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Communicate problems over the long term corporate

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communicate problems over the long-term. Corporate governance goes beyond box-tickingand should address the concerns investors have today, whether corporate governance isrelatedtoboarddiversity/structure,requiressuccessionplanning,corporateactions/takeovers or even environmental issues.Theaccountantshould understand the importance of high-quality reporting to shareholdersand other stakeholders, and how such reporting can contribute to sound governance. As anaccountant, you may also be involved in draftingthe company’s governance report, andmany students aspire to becoming senior managers in a large company in which thisreporting aspect will be of importance.4
2. OBJECTIVESAt the completion of this course, youshould have a/an:a) Understanding of role of governance ethics in accounting andauditing professions.b) Insight into the process of ethics risk analysis and various codes ofethics.c) Understanding and explaining the benefits of sound corporategovernance to a company’s stakeholders, the company itself andregulators.d) Understanding and explaining the relationship between ethics andcorporate governance.e) Explaining the agency problem in the modern corporation, and howa company’s board of directors is supposed to guide managementf)Discussing a stakeholder model of corporate governance.g) Understanding and explaining how the King Committee guides thisprocess in South Africa.h) Appreciating the importance of corporate governance disclosuresin promoting sound corporate governance.i)Understanding the role the accounting and auditing professionsperform in the corporate governance process.
Study Unit 4University of the Witwatersrand31j)Understanding and explaining which companies should becomplying with the King IV codek)Understanding and explaining the composition and functions of theboard of directorsl)Understanding and explaining the different committees whichshould be constituted according to the King code specifically theaudit, remuneration and risk committees.3. WHAT IS “CORPORATE GOVERNANCE”Activity 1Download theKing IV Reportonline and go through the definitions oncorporate governance found in the glossary of terms.-ym.com/resource/collection/684B68A7-B768-465C-8214-E3A007F15A5A/IoDSA_King_IV_Report_-_WebVersion.pdfCorporate governance deals with the way in which the relationships between the board of anentity, its senior managers and its stakeholders should be structured and managed to makeit more likely that the senior managers will manage the company in the interest of thestakeholders, and not in their own interest.New global realities have influenced the content and corporate governance approaches inthe 21st century. These realities are testing the leadership of organisations on issues suchas inequality, globalised trade, social tensions, climate change, population growth, ecologicalovershoot, geopolitical tensions, radical transparency and rapid technological and scientificadvancement (King IV, 2016).

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