Role of Governance in Private and Public Organizations

This video explains the importance of corporate governance, internal control, and external audit in private and public organizations. Corporate governance ensures financial performance while considering the requirements of shareholders, management, customers, government, and the community. Internal control assures effectiveness and efficiency in operations, while external audit provides an independent opinion on financial statements. These functions increase the value of the organization and reduce risk.

Video reflective
In the present era, governance framework is needed for the public as well as the private
organization. The current video is based on the role of governance in private and public
organization. There is increasing importance of the corporate governance in the present corporate
world as it assists in internal control as well as an external audit for private and public
organizations.
This video shows that corporate governance refers to a system, mechanism, process, rules and
regulation in which the organization is managed and maintained. Through the corporate
governance financial performance is accomplished along with considering the requirement of the
shareholders, management, customers, government and the community. It is the tool for
enhancing and protecting the interest of the shareholders of the organization. For the long run of
the business, whether it is a public organization or the private organization, it plays a significant
role.
Further, the internal control defined as an accounting and auditing process, which assures
effectiveness and efficiency in the operations of the organization. The video provides learning
that internal audit assists in reliable financial reporting and the compliance of applicable laws
and regulations in the operational activities of the company. Further internal control is analyzed
by the internal auditor of the company, which are independent of the management of the
organization, so that their judgment, analyses, and reports are not biased and influenced by them.
Therefore, by implementing the internal control function in the business the public and private
company, make assurance about the integrity, reliability, accuracy of the financial and
operational activities along with it also enhance the safeguarding of the asset. It is the business
function of the organization, which increase the value of the organization and reduce the risk of
the organization.
Apart from this video shows that it is compulsory for the large organization, whether it is private
or public, to make the accounts audited by the external auditor. External audit performs the audit
as per the specific laws and rules of the financial statement of a company. Since, the auditor
gives an opinion on the financial report, whether it has been prepared according to the generally
accepted accounting standard applicable to the entity and whether they present the true and fair

view of the operation and activities of the company. The main focus of the external auditor is on
the financial statement and the risk associated with the financial statements. Further, the external
auditor is the independent auditor of the company. The purpose of the external audit is to provide
an independent opinion on the financial statement of the company which are prepared by the
management and by which the stakeholders can get informed about the financial performance of
the entity and also audited financial statement enhance the confidence among the user about the
fairness of the financial statement. Therefore it is essential for the organizations to make the
financial statement audited by the external party.
Therefore the video suggests the governance framework supported by the approach of internal
control and external audit functions as it is vital for the public and private organization for
smooth running of the business.