guideline is attached

CORPORATE GOVERNANCE AND RISK ASSESMENT
CORPORATE GOVERNANCE AND RISK ASSESMENT    7
FROM:
DATE:
SUBJECT: CORPORATE GOVERNANCE AND RISK ASSESMENT
Executive Summary:
This report has been prepared to analyze and evaluate the implications for the auditors when the client company has adopted the ASX principles of the corporate governance in total. Further it also deals with the description of the principles of the corporate governance and its recommendations which should be adopted by the listed company to attain the benefits. The full adoption of the principles of the corporate governance also affects the risk assessment process, audit approach, audit strategy and the audit evidence. This report also deals with the benefits of the adoption of the principles of the corporate governance in full by the listed entity. Thus, it can be interpreted from the analysis the all the listed entities should adopt the principles of the corporate governance as it will have various benefits such as strong internal control and strong policies and ethical principles among the management and employees which will make the company totally compiled with the rules and regulations.
Table of content
    Sr. No.
    Particulars
    Page no.
    1.
    Brief Introduction
    4
    2.
    Principles and recommendation of corporate governance:
    4
    3.
    Influence of corporate governance principles
    7
    a.
    Impact on risk assessment approach
    7
    b.
    Impact on Audit Approach
    8
    c.
    Impact on Audit Strategy
    8
    d.
    Impact on Audit evidence
    8
    4.
    Conclusion
    9
    5.
    References
    10
1. Brief Introduction:
Corporate governance is the framework which describe the regulations, principles, guidelines and processes which help an organization to run the business smoothly and in ethical manner. The ASX Corporate Governance Council has issued corporate governance principles and recommendation for following of corporate governance principles for ASX listed entities.
2. Principles and recommendation of corporate governance:
These principles and recommendations have been discussed in detail as below:
Principle 1: Laying of solid foundations for management and oversight:
This principle states that there should be a board charter for every listed entity which shall include roles and responsibilities of management and board. Further this charter should be clearly defined the power vested with the board and powers delegated to management. The listed entity should do detailed background checking and screening before appointment of any of senior executive or director of the company. Further the entity should also provide all information to shareholders related to appointment or re-appointment of director. Each senior management personnel of the company should have written contract and the contract should mention all terms and conditions agreed with senior management personnel. The company secretary of the company should be responsible for all secretarial and compliance matters and proper functioning of board. There should be diversity rules and regulations of a listed entity and there should be gender diversity among board members. The listed entity should disclose in its annual report regarding the measurable goals and achievement of those goals in relation to gender diversity. Further there should be a process for evaluation of performance of board and its members including all senior personnel and the whole evaluation process undertaken should be disclosed at end of each reporting period in its annual report.
Principle 2: Structure the board to be effective and add value:
This principle states that there should be a nomination committee in each listed company. The nomination committee should be having three members and the chairman of the committee should be an independent director. The entity should also disclose the charter and chairman of the committee in its report. The board skill matrix should also be disclosed in its report at end of reporting period. The report should also disclose the term period of each director and interest of each independent director. There should be independent directors in board majority out of total board members and the chairman should also be an independent director. (Drogalas 2018)There should be professional development program for all the directors from time to time.
Principle 3: Instil a culture of acting lawfully, responsibly and ethically:
This principle states that each listed company should disclose its core values and mission in its website, annual report and other appropriate places. The entity should also disclose the code of conduct for each employee of the organization and the board of the company should be have information about the breach of code of conduct if any of the personnel have breached the code (Safari et al. 2015). There should also have a whistleblower policy and any incident reported for breach of policy should be informed or reported to board members. Further there should be an anti-bribery policy and corruption policy and board should be informed for any policy violation.

Principle 4: Safeguard the integrity of corporate reports:
The board should have an independent audit committee headed and majority of independent director(s) and the entity should also disclose the charter and meetings held of the committee in its report. In absence of the committee, the matter should be disclosed. The board should approve its financial statements and there should be a declaration from CEO and CFO of the company regarding responsibility of financial statements. The board should also report regarding its processes to verify the integrity and authenticity or corporate reports (Murase et al. 2013).
Principle 5: Make timely and balanced disclosure
This principle states that each and every listed entity is required to make timely and genuine disclosure regarding the concerning matter to the concerned person who expect s that it has material effect on the price of the securities. Under this principle it is recommended that every listed company should disclose the policy regarding the obligation of disclosing the material facts. Further it is recommended that each and every listed company should ensure that its board of directors should have the copies of the material announcement of the market which were made recently. Also, the listed company...