Reform in a system, Financial Management

As the meaning of reform in a system, these reforms in corporate governance would make effective impacts over the process of audit in the context of auditor requirements and the clients understandings. The appointment of new directors to serve the organization independently would also enhance the organizational functions in a positive way that reduce the root of the conflicts. It also fulfils the entire requirements that retains the entire aspects of the corporate governance. It also helps make the most effective and positive relationship between the organizational management people with the auditors. This situation enhances the understanding of auditors about the client. The other reforms as like in the form of board member, the half board member would also increases the transparency factors that restricts the other members of the board to make any internal fault for making their own profits (Business Insider, Inc., 2013). It also influences the performance of the auditor related to make huge checking about the financial transaction with the company.

This situation also fulfils the requirement of the auditor related to the use of fair transactions policy that enhance the trust of the shareholders in the organization. On the other hand, in some organizations, the shareholders of the company are also a part of the organizational management that may increase the condition of unfairness that could make the negative image of the organization in the mind of auditors (Business Insider, Inc, 2013). Hence, it is the requirement of the auditor to find out the role of each stakeholder in the organizational decisions. At the same time, the appointment of independent directors will also reduce the biases in decisions that provide the information to the auditors related to the transparency. It also affects the understanding of auditors in positive ways in the context of clients.

Posted Date: 4/3/2013 2:37:29 AM | Location : United States

Related Discussions:- Reform in a system, Assignment Help, Ask Question on Reform in a system, Get Answer, Expert's Help, Reform in a system Discussions

Write discussion on Reform in a system
Your posts are moderated
Related Questions
Question- Under a hire purchase deal structured by X Finance Ltd. for Y Corporation, the finance company has offered to finance the purchase of equipment that costs Rs. 200 lakh.

Time Series and Demand Forecasting   The process of budgeting in many organizations starts with a forecast of demand for the products in the forthcoming year and the sales f

#questi Saven Travel Corporation is considering several investment opportunities in order to diversify its operations. Mr. Saven, president, is trying to determine the firm''''s co

The United States has experienced continuous current account deficits as the early 1980s. What do you think are the major causes for the deficits? What would be the results of cont

Xcell engineering is planning to construct a futsal stadium which has 5 courts to be rented out at any point of time. Its initial cost of investment is RM$280,000. It is expected t

how do we compute for benefits can derrive out of using lockbox system?

It is a phrase referring to the tendency of departments to become isolated from one another in a functionally structured company.

As starting a new business, is it better to leas or buy the business venture?. what factors should be considered. (Knowing that the equity finance is $150,000 and $250,000 could be

Special bond structures are the municipal securities bearing special security structures. They are of two types - insured bonds and pre-refunded bonds.

a) The combined two-firm concentration ratio of Motorola (approximately 17.5%) and Nokia (35%) is around 52.5% of the market. b) Up to 2 marks for correct definition: Market sha