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- September 10, 2018 at 5:10 pm #472533
Hi Sir why does the stock exchange require the corporate governance report sir and under thee OECD principles they dont sate that there should be a balance between NEDS and executive directors but it is stated in The UK Governance code? and sir why do we need an internal audit function annually when we have an external one and sir the NEDS that are part of the audit committee be the same as those part of the board? thanks
September 10, 2018 at 5:42 pm #472536As there is only one version of AA, the UK Corporate Governance Code is examinable “as an example of guidance on best practice in relation to audit committees” (per examinable documents). The London Stock Exchange requirements (“listing rules”) are not examinable but their purpose, in essence, is to provide the companies that issue securities (e.g. shares) with access to a market in which those shares can be traded and to provide transparency to investors about the securities in which they invest. Best practice in corporate governance is therefore a “requirement” for listed companies in the UK. That said, companies do not have meet every principle and provision of the Code. If however a company does not comply with a provision, the board must explain to shareholders why it has not done so – the “comply or explain” approach.
The OECD principles are, again, principles, and they cannot be as “prescriptive” as any one Code in any one jurisdiction – rather, it is the framework for developing a Code in a jurisdiction.
You will not come across this until later (at the Strategic Professional level) but around the world there are different board structures – the most common structure in the UK is a board of executive directors and NEDs which, under the UK Code, should have a number of committees – including an audit committee.
It is because the OECD code does not (because it cannot) be more specific about how a board executes its responsibilities that the UK Code is looked to as an example of best practice.September 11, 2018 at 8:46 am #472589AnonymousInactive- Topics: 0
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Good morning,
Could you please advise is there any changes in sylabus of AA? Can I use books and revisions for Mach-June 2017 exam sessions?September 11, 2018 at 8:57 am #472592(Please make a new post on a new thread for new questions on a different theme.)
Study Text will be ok but I recommend a 2018-19 Revision Question Bank/Kit because some of the Q requirements have evolved and a 2016-17 edition will have been developed when the current exam style had only just been introduced (in September 2016).
There are plenty of Section B constructed response questions available in the past exams but for more practice in Section A OT-case style questions I recommend a new kit.September 12, 2018 at 5:45 am #474183Sir and how can there be conflict between the corporate governance report and the financial statements and who prepares the corporate governance report?
September 12, 2018 at 5:47 am #474184thank you sir
September 12, 2018 at 7:42 am #474185If there is conflict between information provided by the financial statements and information elsewhere in the annual report, typically in the chairman’s statement or directors’ report, this has implications for the auditor’s report. Which is the reader to believe? Is there a misstatement in the financial statements? If yes, the audit opinion should be modified. Is the misstatement in the “other information”? If yes, this would be brought to the readers’ attention in an “other matter paragraph” (see page 25 of the notes).
Of course the auditor would seek to have the matter resolved so that neither modification not other matter paragraph were necessary.
A simple illustration would be if the chairman’s statement claimed the company to have had a profitable year but the financial statements show a loss.September 12, 2018 at 9:10 am #474192thanks you sir
September 12, 2018 at 9:45 am #474209You are welcome!
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