AUDITING NOTES
CORPORATE GOVERNANCE
KING IV is not compulsory but other bodies may require compliance.
WHAT IS CORPORATE GOVERNANCE:
System of rules and processes by which a company is directed and controlled.
KING IV: corporate governance code in South Africa that provides principles and recommended
practices to help organizations achieve effective, ethical, and responsible leadership.
Objectives/Goals of the KING IV: My Real Life example of the difference between
- Responsible governance. CORPORATE GOVERNANCE and KING IV:
- Sustainable value creation CORPORATE GOVERNANCE gives you a picture of
- Transparent reporting how the world of corporate should be like in
- Ethical and effective leadership general (e.g. all students must get 100%), then
Roles and Responsibilities: KING IV is the principles or in lamest term the
teacher that shows you how to go about achieving
- Sets strategic direction. it the end goal step by step (how to get 100%, the
- Formulate principles and codes. methods to use and the things to do)
- Ensures there is transparency.
Foundation Stones of KING IV: -
1. Ethical Leadership: (Responsibility, Accountability, Fairness, Transparency, Integrity,
Completeness)
2. Integral part of the society: (Internal and external stakeholder, how the entity can affect
the society and vice versa)
3. Corporate Citizen: (Consider the needs of the society)
4. Sustainable Development: (Developments that meets the needs of today without
compromising the ability of the future generation to meet their needs)
5. Integral Report: (Companies must provide annual report of their performance in an
integrated manner showing value creation to its users)
4. HUMAN
1. FINANCIAL
RSEOURCES
How the company uses its funds
Employees and their skills
SIX CAPITALS OF
5. NATURAL
2.MANUFACTURING
RESOURCES INTEGRATED REPORT
Tangible assets used by company
Usage of natural Resources
6. SOCIAL AND
RELATIONSHIPL 3. INTELLECTUAL
CONTROL
Company’s relationship with its Company’s intangible assets
community
CORPORATE GOVERNANCE
KING IV is not compulsory but other bodies may require compliance.
WHAT IS CORPORATE GOVERNANCE:
System of rules and processes by which a company is directed and controlled.
KING IV: corporate governance code in South Africa that provides principles and recommended
practices to help organizations achieve effective, ethical, and responsible leadership.
Objectives/Goals of the KING IV: My Real Life example of the difference between
- Responsible governance. CORPORATE GOVERNANCE and KING IV:
- Sustainable value creation CORPORATE GOVERNANCE gives you a picture of
- Transparent reporting how the world of corporate should be like in
- Ethical and effective leadership general (e.g. all students must get 100%), then
Roles and Responsibilities: KING IV is the principles or in lamest term the
teacher that shows you how to go about achieving
- Sets strategic direction. it the end goal step by step (how to get 100%, the
- Formulate principles and codes. methods to use and the things to do)
- Ensures there is transparency.
Foundation Stones of KING IV: -
1. Ethical Leadership: (Responsibility, Accountability, Fairness, Transparency, Integrity,
Completeness)
2. Integral part of the society: (Internal and external stakeholder, how the entity can affect
the society and vice versa)
3. Corporate Citizen: (Consider the needs of the society)
4. Sustainable Development: (Developments that meets the needs of today without
compromising the ability of the future generation to meet their needs)
5. Integral Report: (Companies must provide annual report of their performance in an
integrated manner showing value creation to its users)
4. HUMAN
1. FINANCIAL
RSEOURCES
How the company uses its funds
Employees and their skills
SIX CAPITALS OF
5. NATURAL
2.MANUFACTURING
RESOURCES INTEGRATED REPORT
Tangible assets used by company
Usage of natural Resources
6. SOCIAL AND
RELATIONSHIPL 3. INTELLECTUAL
CONTROL
Company’s relationship with its Company’s intangible assets
community
