(Auditing Principles & Procedures) Define corporate governance, the board of directors, and the audit committee and...

(Auditing Principles & Procedures)

Define corporate governance, the board of directors, and the audit committee and explain how they relate to each other.

Expert Solution

Corporate governance: In simple terms, it is the set of rules & regulations laid down to run the business in a well directed & controlled manner

Board of directors: Board of directors are set of people who are entrusted with the responsibility to ensuring the prosperity of the company by meeting all stake holders interests

Audit Committee: Audit committee is one of the wings of the board of directors who are entrusted with overseeing financial reporting & disclosure

A relation among above three:

1. Audit committee is formed from the members of the board of auditors i.e audit committee is a tool of a board of director's to oversee the financial reporting & disclosure

2. Audit committee & Corporate Governance: Corporate governance includes preparation & disclosure of financial information as per regulatory authorities requirements and audit committee ensures that

3. Corporate governance & Board of directors: Board of directors are the responsible to prepare,Implement & oversee the various policies across the organisation

ekkarill92 answered 2 years ago

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