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ASX Corporate Governance Principles for Wesfarmers

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Added on  2021-06-16

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Risk assessment of the company has provided the assurance to the auditor that financial statements are prepared without any material misstatement and if any material misstatement is there than it can be easily tracked Conceptualization & Explanation of ASX Corporate Governance Principles by Wesfarmers Ltd The standard framework of governance provided by ASX and the extent of its compliance by Wesfarmers is discussed as follows: Solid Framework for Board and Management It is essential for a business corporation to define the roles and responsibilities of Board

ASX Corporate Governance Principles for Wesfarmers

   Added on 2021-06-16

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1Audit and Assurance
ASX Corporate Governance Principles for Wesfarmers_1
2Executive SummaryWesfarmers, a public listed entity in Australia on ASX, has complied with the ASXCorporate governance principles as it has provided standard principles and recommendations tothe corporations that are listed on ASX. Wesfarmers is supermarket giant in Australia andtherefore it is important for the Company to develop a strong corporate governance frameworkfor ensuring its long-term growth and development. The company has to develop its corporategovernance framework as per the Council principles of ASX for ensuring that it all its businessactivities are carried out in a responsible manner. Risk assessment of the company has providedthe assurance to the auditor that financial statements are prepared without any materialmisstatement and if any material misstatement is there than it can be easily tracked
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3Conceptualization & Explanation of ASX Corporate Governance Principles byWesfarmers LtdThe standard framework of governance provided by ASX and the extent of itscompliance by Wesfarmers is discussed as follows:Solid Framework for Board and ManagementIt is essential for a business corporation to define the roles and responsibilities of Boardand management personnel in its governance framework. Also, it needs to state all the relevantinformation about the evaluation process used for assessing the performance of Board andmanagement. The corporate governance statement of Wesfarmers has discussed about thevarious roles and responsibilities of Board in detail in its corporate governance statement (Groot,2009). There is a separate Board Charter prepared by the company provided in its governanceframework to disclose the relevant information about the various roles and responsibilities ofBoard. The management role is also discussed separately from the Board in the governancestatement. The performance assessment measures taken by board for evaluating the performanceof directors and executives is also provided in the statement in detail. Wesfarmers has followedthe ASX principle of ensuring the presence of a solid framework for Board and management(2017 Corporate Governance Statement, 2017).Board Should be property Structured for Adding ValueThe Board should have a proper structure with the presence of an adequate size and theteam members having relevant skills, competencies and knowledge so that it is able to promotethe long-term growth of the company and creating value for the stakeholders (Mallin,2016).There is a distinct heading in the company governance statement about the structure andcomposition of Board to provide all the required information in relation to skills, experience andcompetencies of its members. It also emphasizes on maintaining the independence of directorsand has also maintained a majority of non-executive directors in its Board composition as per theASX principle. The company has developed a Board skills matrix that provides all the relevantinformation about the skills and experience of the Board members (2017 Corporate GovernanceStatement, 2017).
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