Page 15 - Microsoft Word - 00 P1 IW Prelims.docx

The theory of governance

 Accountability

– obligation of an individual or organisation to account for its actions and
activities.

– clarity in communication channels with internal and external stakeholders.

– development and maintenance of risk management and control systems.

 Reputation

– developing and sustaining personal reputation through other moral virtues.

– developing and sustaining the moral stance of the organisation.

– developing and sustaining the moral stance of the accounting profession

 Judgement

– ability to reach and communicate meaningful conclusions.

– ability to weigh numerous issues and give each due consideration.

 Integrity

– adherence to strict ethical standards despite any other pressures to act
otherwise.

– underlying and underpinning principle of corporate governance and it is
required of all those representing shareholder interests in agency
relationships

Illustrations and further practice

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