Chartered Accountants Act As Crusaders In Realizing Corporate Governance

The concept of corporate governance originated in the light of recent corporate failures and scams

. The basic notion behind the corporate governance has gone through a drastic change due to the ever-increasing importance given to the professional management. Now, the corporate governance is dominated by the significant rise in the importance of professions. The present global challenges have forced the corporate concerns to follow the practices of corporate governance. These practices describe the path to the businesses of how to survive and do extremely well in the future.

Though there exist several set of laws which govern the business enterprises so that they protect the interests of those concerned with the business, but there is a need for the corporate governance to ensure the dedication of the business entrepreneurs. It involves laying down a separate line between personal funds and the corporate funds invested in the management of the company. It lays stress on the management to accept the shareholders' rights and to give them due recognition as the true owners of the business. It defines the role of management as the trustees representing the stakeholders.

It has been observed that the objective behind practicing corporate governance can be accomplished by the two crucial aspects. First one is an "inclusive" correspondence to directors' obligations which necessitates the directors to consider all the relationships on which the company counts on in the long run. It also includes the short-term propositions of their proceedings in order to attain relevant success for the company for the overall benefit of shareholders. Secondly, for establishing the corporate governance, it is necessary to make sure that the company achieves greater public accountability. This can only be brought about through accurate audit reporting which elucidates the performance of the company, its courses of actions and its relationships with the employees, creditors, customers as well as the society at the large.

It is assumed that the chartered accountants perform the role of auditors in corporate governance. But in the true sense, they play a more noteworthy role in exercising the practices of corporate governance. Chartered accountants Harrow can execute a variety of functions such as that of a shareholder or an employee or in the managerial department or as a board of director or that of an auditor either internal or external or as a one of the promoters of the company. Be it chartered accountants Croydon or of any other country, they administer an important responsibility in the process of corporate governance by assisting to balance the profit motives of the business entity with its practices as well as running in accordance with the regulatory provisions.

by: doshi

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