AC312 AUDITING

Lecture 10

THE AUDITOR AND CORPORATE GOVERNANCE

Corporate Governance

WHAT IS CORPORATE GOVERNANCE?

PURPOSE OF CORPORATE GOVERNANCE

Corporate Governance

Global Phenomenon

Corporate Governance

Developments in the UK

• Cadbury Report (1992)

• Greenbury Report (1995)

• Hampel Report (1998)

• Turnbull Report (1999)

Corporate Governance

• Scope of Application

• Enforcement of Application

Corporate Governance

Hampel Report Provisions

• Directors

• Directors’ Remuneration

• Relations with Shareholders

• Accountability and Audit

• Institutional Investors

Corporate Governance

Auditors’ Role

• Review certain provisions of Combined Code

Corporate Governance

ISSUES

• Internal Control (incl internal audit)

• Going concern

• Non-exec directors

• Audit Committees

• Remuneration Committees

Corporate Governance

• HAS THE NEW CORPORATE GOVERNANCE FRAMEWORK BEEN SUCCESSFUL?

• POSSIBLE FUTURE DEVOPMENTS