Corporate Governance and Auditors

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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…show more content…
1.3 OBJECTIVES OF THE STUDY The objective of the research is to establish whether the auditor has a role to play in ensuring good corporate governance. If an auditor has, what possible stumbling blocks will interfere with his role of ensuring good corporate governance .The research will increasingly look at the issues of fraud and white-collar crimes in corporate governance of a company? That is, what responsibilities do an auditor has in detecting fraud and white-collar crimes. The research will focus on much selected firms in various industries. The objectives cover to assess the role of auditors in corporate governance, detecting fraud and white-collar crimes to be more specific. 1.4 RESEARCH PROBLEM Is the output of an auditor important in bringing about good corporate governance? There are various audited firms from around the world that have subsequently fallen prey to liquidation or have been placed under judicial management, which has given rise to investors, shareholders and third parties questioning the roles and competences of auditors and the reliability of audited financial statements. 1.5 RESEARCH QUESTION What is the role of an auditor in ensuring good corporate governance? 1.6 RESEARCH SUB QUESTIONS The above research question will be sub divided into the following sub questions: What are the duties or responsibilities of auditors in the first place? a)
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