Corporate Governance Arrangements for JB Hi-Fi: Auditing and Assurance

This article discusses the corporate governance arrangements for JB Hi-Fi, including risk identification and management, audit and risk committee charter, and shareholders' communication policy.

Running head: AUDITING AND ASSURANCE
Auditing and Assurance
Name of the Student:
Name of the University:
Author’s Note:
Course ID:

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Table of Contents
Answer to Question 6:.....................................................................................................................2
References:......................................................................................................................................4

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Answer to Question 6:
Certain corporate governance arrangements for analysing the likelihood of potential
reliance to be placed on the overall control environment of JB Hi-Fi include the following:
Risk identification and management:
According to this policy, the staffs of the organisation are needed to exercise diligence
and the highest ethics level for fulfilling all responsibilities in their dealings. JB H-Fi has
developed a “Fraud and Corruption Control Plan” for embodying a holistic approach of fraud
management by emphasising the need of prevention, identification and remedial measures
(Jbhifi.com.au 2018). JB H-Fi undertakes a proactive approach for mitigating the risks, which
might arise due to corruption and fraud before occurrence. The actions and strategies for
managing corruption and fraud fall into the following categories for the organisation:
 Prevention is designed for minimising fraud and corruption risk, which might take place.
 Detection is a group of measures formulated for uncovering corruption and fraud
incidents at the time of their occurrence (Davies 2016).
 Response is the measure established for undertaking corrective actions for dealing with
fraudulent activities and other activities related to corruption.
Audit and risk committee charter:
The audit and risk committee of JB Hi-Fi is responsible to emphasise on the financial
performance and position of the organisation for providing assistance to the board of directors.
Such responsibilities include review of the effectiveness of internal control of the organisation
and risk management systems (Du Plessis, Hargovan and Harris 2018). For performing these
responsibilities, a charter has been formed, which the board approves and reviews annually.
Shareholders’ communication policy:

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JB Hi-Fi recognises that it is necessary to provide crucial business information to all
shareholders and other stakeholders associated with the organisation within time and this
information is of relevance to them. This policy is designed for assuring effective
communication with the shareholders for encouraging their involvement in the annual general
meeting of the organisation. This policy has been approved by the board of directors of JB Hi-Fi.
In addition, the policy might be updated and accordingly, amendments would be made from time
to time (Tricker and Tricker 2015). This policy assists in supplementing the other corporate
governance policies of the organisation evident in the investors’ section of the website of JB Hi-
Fi, especially its continuous disclosure policy. According to this policy, the particular policies re
outlined, which lay stress about the disclosure of material price sensitive information to the
market.

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References:
Davies, A., 2016. The globalisation of corporate governance: The challenge of clashing
cultures. Routledge.
Du Plessis, J.J., Hargovan, A. and Harris, J., 2018. Principles of contemporary corporate
governance. Cambridge University Press.
Jbhifi.com.au., 2018. [online] Available at:
https://www.jbhifi.com.au/Documents/2017%20Annual%20Report.pdf [Accessed 13 Sep. 2018].
Tricker, R.B. and Tricker, R.I., 2015. Corporate governance: Principles, policies, and practices.
Oxford University Press, USA.