Friday, December 10, 2004
Improving accountability - boardroom inspection
Transparent accountability is a prerequisite for informed oversight. The board accounts so that shareholders or other stakeholders can be in control. The audit is a necessary confirmation of the reliability of the accounting. Without audit, there is no accountability. Without accountability, there is no control. And if there is no control, where is the seat of power?
As more specific responsibilities of directors have been codified, there has been a corresponding expansion of their reporting obligations. And since boards now have overall responsibility for risk management and internal control, directors report publicly on how they exercise that responsibility.
posted by Brian Moran @ 10:15 AM