Roles And Importance Of Woolworths

Corporate governance is the rules in which companies are controlled. This governance essentially balances the

They can have as many shareholders as they want to, there is no limit and they can raise large sums of capital.

Corporate governance is a set of actions used to handle the relationship between stakeholders by determining and controlling the strategic direction and performance of the organization. Corporate governance major concern is making sure that the strategic decisions are effective and that it paves the way towards strategic competitiveness. (Hitt, Ireland, Hoskisson, 2017, p. 310). In today’s corporation, the primary objective of corporate governance is to align top-level manager’s and stakeholders interest. That is why corporate governance is involved when there is a conflict of interest between with the owners, managers, and members of the board of directors (Hitt, Ireland, Hoskisson, 2017, p. 310-311).

Corporate governance in itself has no single definition but common principles which it should follow. For example in 1994 the most agreed term for corporate governance was “the process of supervision and control intended to ensure that the company’s management acts in accordance with the interest of shareholders” (Parkinson, 1994)1. Corporate governance code is not a direct set of rules but a self-regulated framework which businesses choose to follow. This code has continued to change in the past 20 years in accordance with what is happening in the business world. For example the Enron scandal caused reform in corporate governance with the Higgs Report which corrected the issues which were necessary. Although it does not quickly fix problems, it gives a better framework to

Corporate governance is a commonly used phrase to describe a company’s control mechanisms to ensure management is operating according to

John Lewis is a chain of upmarket store operating throughout United Kingdom and owned by John Lewis Partnership. John Lewis is the largest retailer in the UK and started trading in 1864 on London1s Oxford Street and a growing online business (John Lewis, 2016). The John Lewis Partnership is unique: it’s the UK’s largest example of co-ownership and its activities are governed by a principles-based Constitution (John , 2016).

As details of the Enron scandal surfaced public outrage grew, calling for action, accountability and consequences. Corporate governance began receiving renewed interest. Corporate governance is a multi-faceted subject that sets forth the rules and responsibilities of the relationship between the corporation and its stakeholders (Cross & Miller, 2012). This includes the company’s officers and management team, the board of directors, and the organizations shareholders.

Ralph Lauren has provided details about their shares, telling the reader about their different tiered shares and how many shares they have currently issued and how many are outstanding. Surfstitch have provided far less detail and have only told the reader the income for their shares. This difference would be because Ralph Lauren get millions in shares whereas Surfstitch only has thousands. The terminology between both balance sheets is very similar with both companies using the same words all throughout their reports. This suggests that Australia and America have very similar accounting standards and it’s up to the individual company to determine how much information they want to provide (information on

Woolworths Limited was found in Sydney in 1924 (Woolworths Limited a, 2012). During serval years development, Woolworths set foot in a number of sectors which are supermarket, liquor, petrol, hotel, cloth, financial service and general retail (Woolworths Limited b, 2012). In 2009, Woolworths Limited unveiled that it was going to enter the Australian hardware and home improvement industry which was worth $24 billion (Durie, 2009). Woolworth acquired a hardware chain named Danks Holdings Limited and completed a joint venture with Lowe’s which was the second biggest home improvement chain in American and owned one-third shares of the joint venture. The joint venture named Masters Home Improvement opened the first store in Braybrook in Victoria in 2011 (Woolworths Limited c, 2012), and 63 stores across the country during the 5 years development. But in 18 January 2016, Woolworths Limited announced that it intended to exit the hardware and home improvement sector by selling or winding up Masters Home Improvement and Home Timber & Hardware chain after more then $600 million losses (Vitorovich, 2016).

Internal auditors cannot effectively provide an analysis on the company’s internal dealings as they are part of the company. External auditors, however, can observe these processes from the outside and then determine where the funds of the company and whether the dealings adhere to the regulations. Using external auditors in a company prevents conflict of interest from happening. Conflict of interest is a situation where an individual or organization has multiple interests and of those multiple interests, one could possible corrupt the motivation for an act on the other when the auditor has any kind of beneficial interest in their client’s performance. In other circumstances, there is also the threat of familiarity where auditors become

Corporate governance can be defined as the process, customs, laws by which the affairs of a company are managed and controlled it also

According to the Institute of Internal Auditors (IIA), (2011), the internal auditing is a team of consultants, a department and a division or other practitioner which independent, have objective assurance and conduct a consulting activity which is designed to add value and improve the organization operations. The internal auditor can help an organization in achieving its objectives by bringing a discipline and systematic approach in order to improve and evaluate the effectiveness of risk management, control and governance process.

The aim of this essay is to study the function of external auditors in order to analyze why it is important to be independent. The primary mission of external auditors is to review and evaluate all the financial records of a company or corporation. They provide an objective opinion on the organization’s financial statement and effectiveness of the accounting polices in order to help management to make decisions. If the independence of the external auditors is impaired, the public will doubt the quality of professional auditing services, and the consequence would be very serious, just like the bankruptcy of Enron led to the disorganization of Arthur Andersen, once a giant accounting company in the world. In order to maintain and increase

The role of internal audit is to provide independent declaration that an organization’s threatadministration, governance and internal control processes are functioning effectively. Internal auditors deal with concerns that are essentially important to the existence and success of any organization. Unlike external auditors, they aspect beyond financial possibilities and statements to reflect wider problems such as the organization’s reputation, development, its power on the location and the approach it treats its organizations.In summary, internal accountantssupport organizations to thrive.

Corporate Governance refers to the way a corporation is governed. It is the technique by which companies are directed and managed. It means carrying the business as per the stakeholders’ desires. It is actually conducted by the board of Directors and the concerned committees for the company’s stakeholder’s benefit. It is all about balancing individual and societal goals, as well as, economic and social goals. Corporate Governance is the interaction between various participants (shareholders, board of directors, and company’s management) in shaping corporation’s performance and the way it is proceeding towards. The relationship between the owners and the managers in an organization must be healthy and there should be no conflict between the