Corporate governance
Corporate governance is the system by which an organisation is directed and controlled, including the roles and relationships of the board, management, owners and other stakeholders. It addresses oversight, accountability, risk and controls; the applicable requirements depend on the entity and jurisdiction.
Worked example
A board establishes an audit committee to oversee financial reporting and the relationship with external auditors.
Common mistake
A governance committee provides oversight; it does not take over management’s responsibility for preparing the financial statements.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Direct | September 2026–June 2027 |
| ACCA | BT | Direct | September 2026–June 2027 |
| ACCA | SBL | Direct | September 2026–June 2027 |
| FIA | FBT | Direct | September 2026–June 2027 |