Malik Kashif Awan

Malik Kashif Awan 1
Audit & Assurance

AUDIT & ASSURANCE
Malik Kashif Awan
2011

Lecture notes and conceptual demonstration for
Undergraduate / graduate study program in
Economics, Management, Finance and
Social Sciences

This is an extract from the main source “A Chronicle on Audit & Assurance” written by Malik Kashif
Awan and published in Florida, USA in 2001 for a preferred study material at graduate level study course of Management, Economics, Finance, Commerce, Business Administration and Social
Sciences in Pakistan.
For more details visit http://malikashif.pk

Malik Kashif
Awan the Financial the MKA-fe

Engineers

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Malik Kashif Awan 2
Audit & Assurance

Corporate
Governance

Malik Kashif Awan 3
Audit & Assurance

5

THE REGULATORY
ENVIRONMENT AND
CORPORATE GOVERNANCE

Overview of the concept
The regulatory environment and corporate governance

Corporate governance codes

Auditors' communication with those charged with governance

Audit committees

Internal control and risk management Malik Kashif Awan 4
Audit & Assurance

5.1

Corporate Governance

Corporate governance is the system by which companies are directed and controlled. Good corporate governance is important because the owners of a company and the people who manage the company are not always the same.
Corporate governance relates to the internal means by which corporations are operated and controlled. While governments play a central role in shaping the legal, institutional and regulatory climate within which individual corporate governance systems are developed, the main responsibility lies with the private sector.
“A good corporate governance regime helps to assure that corporations use their capital efficiently. Good corporate governance helps, too, to ensure that corporations take into account the interests of a wide range of constituencies, as well as of the communities within which they operate, and that their boards