Question

Good corporate governance requires companies to capture and disseminate information in order that investors, regulators and the public generally can know what a company is doing. Discuss this statement generally and in relation to the requirement on companies to keep accounting records.

Answer 1

1. Corporate governance is the structures and processes for the direction and control of companies. ... To avoid mismanagement, good corporate governance is necessary to enable companies operate more efficiently, to improve access to capital, mitigate risk and safeguard stakeholders

2. Companies to keep according records - the same is also the compliance of law which requires every company to keep records for certain period of time as defined.

3. Benefits of keeping accounting records.

A. Well kept record are one step closer to tax saving.

B. Good accounting records act as backup for all income and business expenses incurred in time of audit

C. Good accounting records complies with law

D. Good records shorten the length of time that an audit takes to be completed.

4. Keeping accurate accounting records allows a business to be able to: Prepare your financial statements quickly and accurately. Provide information to enable the control of cash in the business. Provide management information to base business decisions on. This is very important auspect of every business

5. The main objectives of accounting are maintaining a complete and systematic record of all transactions and analyzing the financial position of a business. Every individual or a business concern is interested to know the results of financial transactions and their results are ascertained through the accounting process

Crux.

Keeping accounting records helps the stakeholders of the business to understand each and every thing and analyse the business in best possible way.

Pls like if logic explained