AC312 AUDITING Lecture 10 THE AUDITOR AND CORPORATE GOVERNANCE

Corporate Governance WHAT IS CORPORATE GOVERNANCE? PURPOSE OF CORPORATE GOVERNANCE

Corporate Governance Global Phenomenon

Corporate Governance Developments in the UK Cadbury Report (1992) Greenbury Report (1995) Hampel Report (1998) Turnbull Report (1999)

Corporate Governance Scope of Application Enforcement of Application

Corporate Governance Hampel Report Provisions Directors Directors’ Remuneration Relations with Shareholders Accountability and Audit Institutional Investors

Corporate Governance Auditors’ Role Review certain provisions of Combined Code

Corporate Governance ISSUES Internal Control (incl internal audit) Going concern Non-exec directors Audit Committees Remuneration Committees

Corporate Governance HAS THE NEW CORPORATE GOVERNANCE FRAMEWORK BEEN SUCCESSFUL? POSSIBLE FUTURE DEVOPMENTS