Objectives, Relevance, and Importance of Corporate Governance

AUDIT AND ASSURANCE

TABLE OF CONTENTS
TABLE OF CONTENTS................................................................................................................2
INTRODUTION..............................................................................................................................1
MAIN BODY..................................................................................................................................1
Objectives, relevance and the importance of corporate governance...........................................1
Critical analysis of circumstance where written representation is necessary and the matters on
which representation is commonly obtained...............................................................................2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUTION
Auditing refers to process involving evaluation of accounting entries recorded in financial
records and presented in the financial statements of company. Audit checks accuracy of financial
records of company Assurance on the other refers to process of analysing the method used in
assessment of the accounting entries and the financial records. Present report will discuss about
the relevance objectives and importance of the corporate governance. It will also discuss
circumstances where written representations are necessary. It will enhance the understanding of
auditing concepts
MAIN BODY
Objectives, relevance and the importance of corporate governance
It defines way in which corporate entity is required to be governed. CG describes the
corporate norms, values and the ethics. Corporate governance is described as system through
which companies are controlled and directed. It looks after matters such as board of directors,
directors responsibilities, audit committee and the relationship with external auditor. It ensures
that companies are running in interest of shareholders and wider community. It ensures that
board of directors are accountable for pursuit of the corporate objectives and corporation
complies with laws and obligations (Bhagat and Bolton, 2019). It ensures that the adequate
corporate strategies are crafted for futures of organisation.
Objective of corporate governance is to develop efficient and better management of the
business organisation. It ensures that there is defined structure for performing the task. In
accounting terms it ensures that all the accounting records are free from material misstatements
and financial statement reflects true and fair view of the organisation.
Corporate governance is relevant for protecting the interest of shareholders and
stakeholders of company. External auditors state finance of firm and attests to validity of the
financial reports published by the company. It is essential for building confidence among the
investors that financial statements have been audited and certified regarding the financial
performance and position of company.
Importance
Corporate governance is interaction between the various participants to shape
performance of company. It defines the ways to deal and make strategic decisions and
developing added value to stakeholder. It also ensures transparency between stakeholders and the
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