Question

What is corporate governance? How can accountants contribute to effective governance?

Answer 1

Corporate governance refers to the private and public institutions, including laws, regulations and accepted business practices, which together govern the relationship, in a market economy, between corporate managers and entrepreneurs on on hand, and those who invest resources in corporations, on the other.

Accountants can contribute to effective corporate governance by following globally accepted accounting practices which is free from defects and ensuring high level of transparency in the reporting of financial statements.