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HI
Can anyone tell me the differences between ‘those charged with goverance’ and ‘mgt’?Are they are same ?
In Clarity Project, it shows that the significant deficiencies are communicated with ‘those charged with goverance’ ,while the insignificant deficiencies are communicated with mgt.
So i wanna know the interralations and diff.Thank u 🙂
In a company, those charged with governance are the board of directors; they might delegate some of their duties in this respect to the audit committee. IN a trust, those charged with governance would the the trustees. In a school it would be the board of governors.
‘Management’ would be below the board – chief accountant, production manager etc.
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So in a company,
‘those charged with governance’are BOD- both ED & NED.
‘Management’ r the subordinates who act under BOD’s strategy.
Am I right? Or ‘those charged with governance’are only NED??- Topics: 0
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Yes, You got it right . Management is considered people involve is day to day runing of company, ie. supervising staff and giving instruction for tasks..so they are required to know the pettey level of weaknesses in the system such as ” staff dont reagrd the use of voucher for petty cash matters. where as the people chanrged with governance that is BOD and Audit commitee which is ofcourse is a sub branch of Upper management that is BOD wants to know about material weakness in the system. Such as disposal of Non current asset is not firts authorosed to sell.
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got it
thank u
😀
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