Page 9 - AAA Integrated Workbook STUDENT S18-J19
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Regulatory environment
2.2 Relevance of corporate governance to the external auditors
A company complying with good corporate governance principles is likely to have a
stronger control environment, therefore less risk of material misstatement in the
financial statements.
External auditors may be required to report on whether companies are compliant with
corporate governance regulations.
The audit committee of a company must also assess the effectiveness and quality of
the external audit and monitor compliance with ethical standards.
2.3 UK Corporate Governance Code
The UK Corporate Governance Code provides the following guidance which is
relevant for both International and UK students.
Corporate
Governance Code
Relations with
Leadership Accountability shareholders
Effectiveness Remuneration
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