Accounting

1.2

Wholly mackerel

The CEO, Charlie bass, and the finance director, Trent Bridge, of wholly mackerel Ltd, a sea food processing company, are revieing their changing business operations. Charlie bass suggests that the introduction of the new corporate governance will cause adjestmentes to the current internal control system, but Trent Bridge doesn’t agree. Charlie also suggests that reporting requirenments will need to alter in line with the new organizational strcture. The finance director asuers him that the present system will be adequate for their current needs.

Discuss the conciderations that need to be made for any changes to the internal control system due to the introduction of corporate governance.

Answer

It seems that the CEO and the Finance Director have very different attitudes towerdes this matter

Sugestion 1

The CEO is suggesting that introduction of new corporate governance will couse adgestmentes to the internal control system and finance director is opposing it.

Corporate governance is the system by which business corporations are directed and control. The corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation such as the board, managers, share holders and stockholders and spells out the rules and procedures for making decisions on corporate affairs. By doing this it also provide the structure through which the company objectives are set and the means of attaining the objectives and monitoring performance. Thus any changes in corporate governance will result in changes in internal control system as well.

Suggestion 2

Also the CEO is suggesting the reporting requirements will need to alter in line with the new organizational structure and finance director is opposing it.

Disclosure and transparency is one of the most important principals of corporate governance. Organizations should clarify and make publically known the roles and responsibilities of the...