Homework answers / question archive / Chinoya is an independent construction company, dealing with large scale contracts throughout the UK and with some international interest in Europe, particularly in Spain

Chinoya is an independent construction company, dealing with large scale contracts throughout the UK and with some international interest in Europe, particularly in Spain

Accounting

Share With

Chinoya is an independent construction company, dealing with large scale contracts throughout the UK and with some international interest in Europe, particularly in Spain. Chinoya has recently established an audit committee, the members of which are very concerned about complying with corporate governance best practice, particularly since they are currently looking at the possibility of obtaining a stock exchange listing. You are an internal auditor with the company and have been asked to conduct a review of how well the company is meeting relevant corporate governance requirements.

You are required to prepare a report that addresses the following. Explain the term ‘corporate governance’ and why it is important for companies to comply with relevant corporate governance requirements. (10 Marks)