Question

In: Accounting

Accounting Theory What is the role of accounting in corporate governance?–10 mark

Accounting Theory

What is the role of accounting in corporate governance?–10 mark

Solutions

Expert Solution

The accounting and Corporate governance walk hand in hand. The department of accounting acts as a gatekeeper of all corporate governance activities in a company. Efficient corporate governance builds the customer's faith in companies, thus resulting too lower capital costs in investments.

The scope of work for an accountant in corporate governance is broad, and ensures accountability and transparency in the everyday undertakings of organisation is the most critical task. The accountant professional holds the responsibility of company's in disclosing accurate information not only to the shareholders as well as to stakeholders. They play a big role in building the stakeholder's trust in the brand of the company. They report the flow of capital in and out of many departments. They also keep a close monitoring on the undertakings carried out with the capital and where the capital is being invested. It also ensures a proper framework of transparency and accountability to safeguard the stakeholder's interests


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