ACC 312 Study Guide - Midterm Guide: Polly Peck, Financial Statement, Uk Corporate Governance Code
Document Summary
During the 1980s and 1990s there was huge concern within the business community following the financial scandals surrounding bcci, polly peck a(cid:374)d o(cid:271)ert ma(cid:454)(cid:449)ell(cid:859)s (cid:272)o(cid:373)pa(cid:374)ies. Su(cid:272)h (cid:272)o(cid:374)(cid:272)er(cid:374) (cid:449)as see(cid:374) in a lack of confidence in financial reporting, and in shareholders and others being unable to rely on auditors to provide the necessary safeguards for their reliance on company annual reports. Competitive pressure within companies and on auditors, making it difficult for auditors to maintain independence from demanding boards lack of apparent accountability regarding directors remuneration and compensation for loss of office. The cad(cid:271)ur(cid:455) co(cid:373)(cid:373)ittee defi(cid:374)ed (cid:272)orporate go(cid:448)er(cid:374)a(cid:374)(cid:272)e as (cid:858)the s(cid:455)ste(cid:373) (cid:271)(cid:455) which companies are directed and controlled. Boards of directors are respo(cid:374)si(cid:271)le for the go(cid:448)er(cid:374)a(cid:374)(cid:272)e of their (cid:272)o(cid:373)pa(cid:374)ies. The shareholders(cid:859) role in governance is to appoint the directors and the auditors and to satisfy themselves that an appropriate governance structure is in place.
