Audit, risk and internal control

Effective audit, risk management and internal control are each an important aspect of corporate governance. It is thought that the successful development and delivery of a company’s strategic objectives, as well as its ability to take advantage of new opportunities and secure its long term survival, depend upon it being able to properly identify, understand and respond to the risks it faces.

UKCG Code and FRC guidance

A central part of the UK’s corporate governance regime is the UK Corporate Governance Code (the UKCG Code), which is administered by the Financial Reporting Council (FRC). To meet certain requirements of the UK Listing Rules (UKLRs), a company with a listing of equity shares in the equity shares (commercial companies) category or the closed-ended investment funds category must apply the principles of the UKCG Code and comply with, or explain why it has not complied with, each of its provisions in its annual report and accounts. In addition, many other companies choose to apply the principles of the UKCG Code and comply or explain under its provisions, although they are not required to do so. The UKCG Code sets out

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