Corporate governance: encouraging dialogue and participation

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How we govern our corporations plays a central role in the strength and health of our global economy.

Today, there is a growing dialogue among the different stakeholders about corporate governance and how it should evolve to cope with the increasingly dynamic and global nature of our capital markets. This dialogue is taking place against a background of legislative and regulatory change; the implementation of International Financial Reporting Standards around much of the world; an increase in the scope of audit and other internal control and risk management activities; and increased public scrutiny.

It is only with dialogue and the active participation of all stakeholders that the appropriate balance can be reached between:

  • strengthened central controls and fast local responsiveness;
  • effective risk management and the enduring need for innovation;
  • the additional costs of the new corporate governance and the value it seeks to protect and enhance.
The aim of this section is to help inform and stimulate that dialogue.

New thinking on internal control

All businesses face common drivers for a better controls environment; the need to respond to external and internal stakeholders’ expectations, achieving improved governance whilst reducing the cost, and the need to improve business processes. Find out more about our new report, "From compliance to competitive edge" and the implications for corporate governance and the role of the audit committee.

Improving audit committee effectiveness

On 30 October 2008, the Audit Committee Guidance Committee (ACGC) published the Guidebook for audit committees in Singapore. The ACGC was established jointly by the Monetary Authority of Singapore, the Accounting and Corporate Regulatory Authority, and the Singapore Exchange Ltd in January 2008. Its purpose was to develop practical guidance to assist audit committees (ACs) of listed companies in Singapore to better appreciate their responsibilities and enhance their effectiveness in performing their roles.

This guidebook identifies the key regulatory responsibilities of ACs and provides guidance on dealing with the practical issues and concerns. This News alert highlights and summarizes the key content in the guidebook.