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Who are Those Charged with Governance?
Is it the sub-committees such as Audit Committee, Remuneration Committee, Nomination Comittee and Risk Management Committee?
And does it include executive directors or non-executive directors?
I have been struggling to find proper explanations on this
I think the reason you are struggling is because there are no clear answers to your question.Often it will depend on context concerned- in some specific cases directors are legally held to be accountable for actions undertaken by the company of which they are directors.Corporate governance concerns how companies are directed and controlled.This clearly involves directors and senior management as well as relevant committees but could also be more widely defined to include other stakeholder groups including institutional stakeholders,other employees and customers.
Often in terms of audit itself,those in charge of governance concerns the directors of company who are responsible ensuring adequate financial statements are kept as well as ensuring adequate internal controls exist in the organisation.This is clearly make sure that there is a clear demarcation between the legal responsibilities of directors and legal responsibility of the auditor.
Thank you so much for your answer. Truly appreciate it! 🙂 I have a better understanding now.
You are welcome.