Corporate Governance and Risk Management

This assignment provides an in-depth analysis of corporate governance and risk management in two Australian organizations: JB Hi-Fi Ltd and Commonwealth Bank. The study examines the roles and responsibilities of board members, particularly the audit committee and risk management committee, in facilitating financial services to society. The analysis also highlights the importance of corporate governance in managing and executing financial and equity needs.

AUDITING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
A. Justification in relation with the corporate governance process of both the organisations1
B. Identification of the Audit committee of both organisations.............................................3
C. Determination of usefulness of the audit committee for auditors and for the companies. 5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Internal and external auditing is the prime requirement of business in accordance with
analysing the outcomes and facilitating informations to the stakeholders. In the present
assignment there will be discussion based over the corporate governance of JB Hi-Fi Ltd and
Commonwealth bank. The report will be helpful in terms of analysing the audit committee,
auditing professionals and society of the these organisations.
A. Justification in relation with the corporate governance process of both the organisations
In accordance with the corporate governance of these organisations which are analysed
as follows:
JB Hi-Fi Ltd:
As per the corporate governance of JB Hi-Fi Ltd. There has been distribution of the
work in accordance with level of duties and operations handle by the professionals at
organisation. The role of board of directors is relevant with protecting the firm from any
financial crisis as well as enhancing the long term shareholder values. In accordance with the
other manager and directors of group are committed to make appropriate efforts in accordance
with conducting the high ethical governance (JB Hi-Fi Ltd ANNUAL-REPORT, 2017).
However, this statement can be found in the governance, environmental and social statement
section such as section 4 for the operations.
Commonwealth Bank:
The bank has rules and regulations as well as framework for the development high
standard corporate governance. The directors, managers, board and the committee is highly
committed towards facilitating the shareholders with appropriate amount of dividend and
protects their investments in the company (Annual Report, 2017). However, this statement has
been found in the section 4 of the annual report as corporate governance.
ASIC:
In accordance with the corporate governance the Australian securities and investments
commission plays the main role in giving it the legal framework. It works as funnelling the
stakeholders toward analysing their duties and responsibilities in the organisation. However, the
main motive is to resolve the managerial conflicts, shareholder engagements, oversight the
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financial or annual audit, risk management and the relevant corporate governance functions. The
framework of an entity is to make the adequate identification of the risks, analysing the
available resources, market competition and the periodical audit (Corporate governance, 2017).
It highlights the roles and responsibilities of the board directors in consideration with making
the adequate improvements as well as decisions relevant with the operations of business.
Comparison over various corporate-governance components:+
Stakeholder Relations:
In accordance with the appropriate corporate governance there will be need to have the
adequate corporate governance that will be beneficial for the business in terms of attaining the
investors for the long period. Therefore, in accordance with this organisation JB Hi-Fi Ltd and
the commonwealth bank has facilitate the dividend payment to their shareholders in terms of
annual turnover and fair dividend policies. They have made disclosure of financial of
organisation on the regular basis. Thus, in terms with the internal stakeholder the management
and the executive control of Common Wealth bank is better than JB Hi-Fi Ltd.
Direction:
In both of the organisation the direction plays main role in the success of such premises.
Therefore, in accordance with the JB Hi-Fi Ltd it can be said that there is need to have adequate
development in the policies and procedures of the business. While on the other side Common
wealth bank has adequate policies and procedure that can e reflect in the performance and the
outcomes of the business.
Transparency in disclosure:
This is the responsibilities of the board of directors and the owners of the organisation in
terms of making the adequate disclosure of the financial statement at the end of every period.
Therefore, in these organisations, there has been regular auditing of the financial statements of
such period and present the transparent and clear information to the external bodies.
Leadership:
In terms of having the execution and control over each operational tasks in the
organisation there is need to have the perfect leader and the managers who will seek the
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requirement of the firm as well as employees and motivate them to make efficient efforts in
terms of attaining such targets. In accordance with JB Hi-Fi Ltd it can be said that there has
been proper leadership and management in the internal environment which is helping them in
terms of attaining the required targets.
Ethical Behaviour:
There are requirements of acquiring the code of conduct that will be helpful for them in
terms of promoting the ethical work frame in the organisation. In JB Hi- Fi Ltd and
Commonwealth Bank of Australia, these firm are performing in the environment with
considering the ethical and legal morale.
B. Identification of the Audit committee of both organisations
The auditing committee is the board of directors of an organisation who has rights to
take decisions and present the most adequate solutions to any problem (Schmidt and
Fahlenbrach, 2017). Thus, they are responsible for operating and overseeing the financial
reporting and disclosure the data set. The Audit committee of both organisations are as follows:
JB Hi-Fi Ltd:
In accordance with the audit committee of this organisation the board members are
highly committed toward their duties and operations such as making fruitful disclosure of the
financial statement and presenting the financial reports. However, there are several boards of
directors such as:
Name Duties
Mr. Greg Richards
chairman, non-executive director
Greg is appointed as the chairman of the
organisation and he is also member of
remuneration committee.
Mr. Stephen Goddard
Non-executive director
He is the member of audit and risk
management committee.
Ms Beth Laughton
Non-Executive Director
Beth is qualified charted accountant and
execute the corporate finance and equity
findings of the organisation.
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Mr Mark Powell
Non-Executive Director
Mark has been appointed in the board members
he controls and execute the logistics, retail and
wholesale distribution. He is also member of
risk management committee and audit
committee.
Ms Wai Tang
Non-Executive Director
Wai has responsibility to execute the industrial
expenses or investment and he is also the
member of audit committee and risk
management committee.
Commonwealth bank:
The board members of this organisation are highly committed towards their roles and
responsibilities in the organisation such as they are tended to facilitate the financial services to
the society. However, the audit committee of this organisation can be understand as:
Name Duties
Catherine Livingstone AO
Chairman
Catherine is the chairman of the organisation
and she is committed to execute the audit
committee, risk management committee as
well as remuneration committee.
Ian Narev
Managing Director and Chief Executive
Officer
Ian has been appointed as the managing
director of the organisation who is also the
chief executive officer of the firm. He executes
and makes strategies for the corporate
development and manages the acquisition of
the entities.
Shirish Apte
Non-Executive Director
Shirish is the director of the firm he manages
and executes the risk committee and audit
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committee.
Sir David Higgins
Non-Executive Director
David is also the board member as well as
manages the risk and audit committee of
organisation.
Launa Inman
Non-Executive Director
Launa is appointed as the board member and
she executes the remuneration committee of
the organisation.
C. Determination of usefulness of the audit committee for auditors and for the companies
Enclosed in ppt.
CONCLUSION
As per the above study it can be said that the corporate governance is the main body of
the organisation who manages and executed the financial and equity needs. Thus, it is necessary
that the members are highly committed towards their duties, roles and reasonability of the
organisation.
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REFERENCES
Books and Journals
Agrawal, A. and Cooper, T., 2017. Corporate governance consequences of accounting
scandals: Evidence from top management, CFO and auditor turnover. Quarterly Journal
of Finance. 7(01). p.1650014.
Schmidt, C. and Fahlenbrach, R., 2017. Do exogenous changes in passive institutional
ownership affect corporate governance and firm value?. Journal of Financial Economics.
124(2). pp.285-306.
Van Grembergen, W. and De Haes, S., 2017, January. Introduction to IT Governance and Its
Mechanisms Minitrack. In Proceedings of the 50th Hawaii International Conference on
System Sciences.
PDF
JB Hi-Fi Ltd ANNUAL-REPORT. 2017. [PDF]. Available through
:<http://member.afraccess.com/media?id=CMN://3A477813&filename=20170915/
JBH_01896440.pdf>.
Annual Report. 2017. [PDF]. Available through
:<https://www.commbank.com.au/content/dam/commbank/about-us/shareholders/pdfs/
annual-reports/annual_report_2017_14_aug_2017.pdf>.
Corporate governance. 2017. [Online]. Available through :<http://asic.gov.au/regulatory-
resources/corporate-governance/>.
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