Corporate Governance and Auditors
CHAPTER 1
INTRODUCTION
BACKGROUND
There are a number of positive developments in the economy since the introduction of foreign currency (multi currency system), which if sustained, will spearhead economic recovery in the short to medium term horizon. These developments included the introduction of the multi currency system and the liberalization of the exchange control, the formation of government of national unity (GNU) and the engagement with multilateral institutions and the donor community.
This is already evidence of stability coupled with an increase in industrial capacity utilization since the adoption of multi currency in February 2009.stability is projected to spur growth in the financial, manufacturing and other sectors of the economy. However liquidity remains a challenge thereby lending and profitability, which impact on recapitalization of the economy.
The research is of the view that under the aforementioned scene, proper corporate governance structures are inevitable. There is need for improvement on the issues of corporate governance in all corners of the economy if real economic growth is to be realized. The research is also of the opinion that many companies collapsed over the past decade owing to partly serious corporate governance deficiencies, among other challenges. As a result, the research serves to highlight, hint and encourage all the relevant stakeholders to establish proper corporate governance structures in which the auditor is tasked to review and evaluate the effectiveness and efficient of the structures.
Corporate governance measures and other incentives are unveiled by the top-level management in various companies to create a platform for companies to transform from stability to growth. These measures are projected to consolidate the positive gains that are already emerging in the economy. Thus, for the corporate governance structures so established to be proper, effective and efficient, the research is of the view
INTRODUCTION
BACKGROUND
There are a number of positive developments in the economy since the introduction of foreign currency (multi currency system), which if sustained, will spearhead economic recovery in the short to medium term horizon. These developments included the introduction of the multi currency system and the liberalization of the exchange control, the formation of government of national unity (GNU) and the engagement with multilateral institutions and the donor community.
This is already evidence of stability coupled with an increase in industrial capacity utilization since the adoption of multi currency in February 2009.stability is projected to spur growth in the financial, manufacturing and other sectors of the economy. However liquidity remains a challenge thereby lending and profitability, which impact on recapitalization of the economy.
The research is of the view that under the aforementioned scene, proper corporate governance structures are inevitable. There is need for improvement on the issues of corporate governance in all corners of the economy if real economic growth is to be realized. The research is also of the opinion that many companies collapsed over the past decade owing to partly serious corporate governance deficiencies, among other challenges. As a result, the research serves to highlight, hint and encourage all the relevant stakeholders to establish proper corporate governance structures in which the auditor is tasked to review and evaluate the effectiveness and efficient of the structures.
Corporate governance measures and other incentives are unveiled by the top-level management in various companies to create a platform for companies to transform from stability to growth. These measures are projected to consolidate the positive gains that are already emerging in the economy. Thus, for the corporate governance structures so established to be proper, effective and efficient, the research is of the view
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