Question

1-What’s the role of auditors and legal advisors in corporate governance?

2- What are the reasons behind the failure in corporate governance?

Answer 1

Answer 1

An Auditor are the person who in simple language are the person who are appoint to check the accuracy of the financial statement of the company and also give his opinion that whether the financial statement are shows true and fair view of financial position of the Entity

Although the auditor also play are very important role in corporate governance of the entity which are explained below:

· Increase accountability

Evaluating Controls and Operations as a role of Auditor Enhancing the Corporate Governance. Introducing Policy are help to identify and increase the accountability at work place.

· Saving Interest of Stake Holders

       Auditor are Required to attest the validity of the Financial Report that are released by the entity. Which state as the one of the important role of Auditor in corporate governance to protect the interest of shareholders and the stakeholders of company

· Relationship with Regulators

Once an Auditor Attest the financial statement, it is more likely that regulator show their interest toward them. Stakeholder expect loyalty and trust from auditor while resolving financial facts and exposing the fault in an organisation. All this shows that the auditor helps in fostering a good relationship with regulators

· Crisis Management Plan

Auditor help in ensuring good corporate governance by assigning responsibilities to different official ,which also help to ensure that if the company face any financial crisis , those official have the plan to make sure that the confidence of the investor are sustained.