Analysis of Mechanisms of Monitoring and Controlling of Corporate Governance System

Document Type : Review Paper

Authors

1 Assistant Professor, Department of Accounting, Ferdowsi University, Mashhad, Iran

2 Master's Degree in Accounting, Ferdowsi University of Mashhad, Iran

3 Master's Degree in Accounting, Ferdowsi University of Mashhad, Iran, Corresponding Author

Abstract

The main objects of mechanisms of monitoring and controlling are transparency and accountability. Hence, corporate governance is one of the factors that is considered by the organizations for performing accountability, focusing on the establishment of audit committee and internal auditing. For gaining more efficiency and completing control role at the organization, audit committees establish stronger internal control policies by increasing the quality of financial reporting. The scope of corporate governance’s roles ranges from guidance and control of board of directors, chief operating and executive officers to the assurance of internal and independent auditors. Audit committee and internal auditing are the managers monitoring tools which provide to decision-makers of an organization the ability of better management of activities. The most important control tool is internal control. Weak internal control and risk management will make the corporate governance system, vulnerable. So audit committee and internal auditing as mechanisms of monitoring and internal control as a mechanism of control are considered as the important components of corporate governance. The matters which is important is that monitoring and controlling mechanisms need to be improved consistently in the events of changes at the organization. So, this article discusses the significance of the audit committee, internal auditing and internal control, and explains the role of these mechanisms in corporate governance.

Keywords

Main Subjects

References

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Journal of Accounting and Social Interests
Volume 7, Issue 4 - Serial Number 27
February 2018
Pages 59-82

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History

  • Receive Date: 11 April 2016
  • Revise Date: 13 January 2018
  • Accept Date: 03 May 2017

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