What better topic to start this blog than corporate governance. Corporate governance is defined by the Organisation for Economic Cooperation and Development (OECD) as, “… a set of relationships between a company’s management, its board, its shareholders and other stakeholders. Corporate governance also provides the structure through which the objectives of the company are set, and the means of attaining those objectives and monitoring performance are determined.” The OECD published a book titled “G20/OECD Principles of Corporate Governance” which can be read for free at this link. Navigate to the lower part of the website and click on the “Read” icon. As you will discover, there are a great many publications by the OECD that may be of interest to you for free.
A company’s corporate governance plays a critical role in its control environment which, in turn, sets the tone at the top, middle, and bottom. In order to have strong controls, a company must first have a strong corporate governance. When performing a risk assessment on a company, auditors will evaluate many parts of the company including its corporate governance and its control environment. Want to learn about corporate governance? Visit the OECD website and read the book via the link above.