acca考试p1总结讲义
作者： 发布时间：2016-08-02 15:13
governance:
directors
(a)chairman
running the board and setting its agenda
ensuring the board receives accurate and timely information
ensuring effective communication with shareholders
ensuring sufficient time is allowed for discussion of controversial(????)issues
taking the lead in board development
facilitating???? board appraisal
encouraging active engagement?????? by all the members of the board
reporting in and signing off accounts
(b) ceo
business strategy and management
investment and financing
risk management
establishing the company’s management
board committees
liaison with stakeholders
(c) division of responsibilities
ceo run the company, chairman run the board and take the lead in liaising withshareholders
chairman carries the authority of the board, ceo has the authority that isdelegated by the board. unfettered powers is concentrated into on pair of hands
avoiding conflict of interest
board can’t make the ceo accountable for management if it is led by ceo
board is more able to express its concerns effectively by providing a point ofreporting for the neds
chairman is responsible for obtaining the information that other directorsrequire to exercise proper oversight(??) and monitor the organizationeffectively
compliance with governance best practice and hence reassures shareholders
(d) roles of neds
strategy. contribute to, and challenge the direction of, strategy
scrutiny. scrutiny the performance of executive management in meeting goals andobjectives and monitor the reporting of performance.
risk. financial information is accurate and financial controls and systems ofrisk management are robust.
people. determining appropriate levels of remuneration for executives, and arekey figures in the appointment and removal of senior managers and in successionplanning
contribution of neds:
better balanced board(power, skills and experiences)
representing shareholder interests(put shareholders’ viewpoint in board discussion,)
monitoring function(monitors risks, controls and operations effectively, theperformance of executive directors)
(e) advantages of neds
external experience and knowledge which executive directors do not possess.
provide a wider perspective???????? than executive directors
a comfort factor for third parties such as investors or creditors
certain roles (father confessor(??????): being a confidant???? for the chairmanand other directors; oil-can: intervening to make the board run moreeffectively; high-sheriff??????: if necessary taking steps to remove thechairman or ceo)
full board members who are excepted to have the level of knowledge that fullboard membership implies.
(f) problems of neds
lack independence (no business, financial or other connection;cross-directorships; should not take part in share option schemes and theirservice should not be pensionable??????; appointments should not be for aspecified term and reappointment should not be automatic; procedures shouldexist to ensure neds take independent advice)
prejudice???? and against widening the recruitment of neds
high-calibre neds may gravitate(???) towards the best run companies
have difficulty imposing their views upon the board.
not enough emphasis is given to the role of neds in preventing trouble
limited time
damage company performance by weakening board unity and stiflingentrepreneurship????????
(g) remuneration package
basic salary(experience, market rate)
performance related bonuses(transaction bonuses; loyalty bonuses)
shares
share options (align???? management and shareholder interests, particularlyheld for a long time)
benefits in kind (transport??????/ health provisions / life assurance /holidays / expenses / loans)
pensions(???)
(h) remuneration policy
pay scales
proportion of different types of reward
period
be related to measureable performance
balance between short and long-term performance elements
transparency
?i?responsibilities of the board
formal schedule????? of matters specifically reserved?????? to it for decisionat board meetings
monitoring the ceo
overseeing strategy
monitoring risks, control systems and governance
monitoring the human capital aspects of the company, eg succession, morale,training
monitoring potential conflicts of interest
ensuring that there is effective communication of its strategic plans.
nomination committee
(a)consist mainly of neds, to consider:
the balance between executive and independent neds
the skills, knowledge and experience possessed by the current board
the need for continuity and succession planning
the desirable size of the board
the need to attract board members from a diversity or backgrounds
(b)induction
build an understanding of the nature of the company, its business and itsmarkets;
build a link with the company’s people
build an understanding of the company’s main relationship including meetingswith auditors
(c) continuing professional development
extend their knowledge and skills continuously;
concentrate on the role of board, obligations and entitlements of existing directorsand the behaviors needed for effective board performance.
audit committee
(a)function
improve the quality of financial reporting
reduce the opportunity for fraud
enable the neds continue an independent judgement and play a positive role
help the finance director (raise issues of concern; get difficult things done)
strengthen the position of the external auditor
the external auditor can assert(??) his independence when dispute withmanagement
strengthen the position of the internal auditor
increase public confidence
(b) review of financial statements andsystems
considering performance indicators and information systems that allowmonitoring of the most significant business and financial risks.
(c) liaison with external auditors
being responsible for the appointment or removal of the external auditors
any other threats to external auditor independence (non-audit service; conflictof interest)
discussing the scope of the external audit
acting as a forum for liaison between the external auditors, the ias and thefinance directors
helping the external auditors to obtain the information
making themselves available to the external auditors for consultant
dealing with any serious reservations.
(d)review of internal audit
standards including objectivity, technical knowledge and professional standards
scope including how much emphasis is given to different types of review
resources (enough hours, personal technical and skills)
reporting arrangements
work plan (review of controls and coverage of high risk areas)
liaison with external auditors
results
relate to external auditor (increase the independence of external auditor; actas liaison person to facilitate the communication between the executivedirectors and external auditors; act as coordinate the work between externalauditor and internal auditor; to monitor the independence and quality of workof external auditor)
related to internal audit function (to approve the appointment ortermination???? of appointment of the head of internal audit; to review the workof the internal audit function)
(e)review of internal control
monitor the adequacy of internal control systems in mitigating???? risks(control environment, management’s attitude)
cover legal compliance and ethics
address the risk of fraud (report fraud, frand to be investigated)
reviewing the company’s statement on internal controls
consider the recommendation of the auditors in the management letter andmanagement’s response
active supervisory role (review major transactions)
(f)review of risk management
confirming a formal policy in place for risk management, risk management isupdated to reflect current positions and strategy.
(g) independence of internal auditcommittee:
only be effective if neds are independence.
crucial to discuss the management’s competence and judgement with the externalauditors, if not, they may feel loyalty towards management
investors’ confidence
reporting of the internal audit committee need the neds’ independence,otherwise influence the integrity of the auditors.
internal auditors/external auditors comparison of role in the context ofcorporate governance
(a)assess the need for internal audit
scale, diversity and complexity of the company’s operations
number of employees
cost-benefit considerations
changes in organizational structure
changes in key risks
problems with internal control systems
increased number of unexplained or unacceptable events
(b)role of internal audit function
independent checking, examination and evaluation the internal control systemestablished by executive director.
internal control over financial reporting
fs whether show true and fair
internal control over operation
operational information(management information)
review of “3e”
review of compliance with laws and regulations
review of safeguarding of the organization’s assets
review of implementation of corporate goals and objectives
review of significant risks to the organisation, monitoring risk managementpolicy and risk management strategies.
(c) advantages of appointing internalauditor from outside the company:
external appointment would bring detachment and independence (reduce or avoidsthe independence and familiarity threats)
an external appointment would help with independence and objectivity. own nopersonal loyalties nor ‘favours’(??) from previous positions. have no personalgrievances nor conflicts with other people. (increase the confidence ofinvestors)
some benefit would be expected from the “new broom effect’ in that theappointment would see the company through fresh eyes .(bring a fresh pair ofeyes to the task)
come in with new ideas and expertise gained from other situations
the possibility exists for the transfer of best practice in from outside.(bestpractice and current developments can be introduced)
(d) review of the risk management
identification. risks comes and go with the changing nature of businessactivity, and with the continual change in any organization’s environment.
assessment. the probability of the risk being realized; the impact or hazard.
review. analyses the controls that the organization has.
report. a report on the review is produced and submitted to the principal.
(e)social and environmental audit: why
there is a growing belief that environment issues represent a source of risk interms of unforeseen liabilities, reputational damage, or similar.
the ethical performance of a business, such as its social and environmentalbehaviour, is a factor in some people’s decision to engage with(??????) thebusiness in its resource and product markets.
an increasing number of investors are using social and environmentalperformance as a key criterion for their investment decisions.
(f)environmental audit: what
is a systematic, documented, periodic and objective evaluation of how well anentity, its management and equipment are performing, with the aim of helping tosafeguard the environment by facilitating(??) management control of environmentpractice and assessing compliance with entity policies and externalregulations.
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