Increasing transparency, improving control
Today’s business world continues to demand greater corporate transparency. Investors want access to more accurate and relevant information about companies, transactions, markets and risks. Regulators are moving to exert more control. While the post global financial crisis (GFC) period is now beginning to see an increased level in transaction and takeover activity, it is also true that beneath this improved market confidence, the fundamental discipline of sound corporate governance remains key.
Investors look for confidence that the board has in place processes to ensure day to day risk management does not suddenly turn into crisis management. As such, governance concepts of probity, accountability, transparency and control should be integral to business organisation and processes.
Ernst & Young believes that good governance is more than a focus on regulation and legislation aimed at simply ensuring compliance. It starts with the culture of the organisation set by the "tone from the top" and then goes beyond its boards and various committees, driving the "tone in the middle" through tools such as systems of internal control, risk management and audit (internal and external).
From this we believe that the board is central to any governance framework in all companies, large and small, public and private. Boards should start their assessment by considering their strategic, transactional and mechanical response to the governance challenges facing them.
| Strategic | How are the strategic objectives of the company evidenced through its board and committee structures? |
| Transactional | How does the board review, assess and report transactions undertaken by the company? - Risk identification and control environment
- Oversight of the audit function (internal & external)
- Oversight of the financial reporting process
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| Mechanical | What are the mechanics around board and committee meetings and resulting communications? - Members
- Information
- Meetings
- Agendas and minutes
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Ernst & Young has extensive financial reporting and corporate governance knowledge and experience, gained across all markets and geographies. Our clients leverage our governance experience in areas such as pensions, financial instruments, direct and indirect taxes, foreign currency, subsidiaries, joint ventures, provisions, disposals and impairment. Whatever your requirements, we assemble multi-disciplinary teams that can address your most complex issues, using our proven global methodology and deploying the latest, high-quality auditing tools and perspectives.
