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View Full Version : important points on regulatory environment & corporate governance



rajni
29-11-07, 02:22 AM
Need for auditors to communicate with those charged with governance Any potential risk or exposures
 Material risk to organisation

International codes of CG
 IOSCO: Promotes as international high standards of regulation to maintain efficient and sound markets
 OECD principles: Effective CG framework

Reporting responsibilities of auditors:
 FS provide a true and fair view of financial position and performance of organisaton in given time period
 FS are prepared in accordance with all relevant legal, regulatory, governance and accounting regulations

Role of audit committees
 Oversee external audit
 Monitor the internal control systems

Limitations of audit committee
 Does not have authority to appoint or dismiss auditors
 Added cost to the organization

Importance of internal control and risk management
 The purpose of internal control and risk management is not to eliminate all business risks but to provide a way to manage them.