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Can u pls explain the meaning of encircled point on the topic elements of control environment?
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Those charged with governance should be able to question management of policy making where they are against the objective of the organisation and they should be able to pursue on such issue without any problem with teh management as they have to ensure accountabilitiy
Those charged with governance refers to those persons who ordinarily are accountable for ensuring that the entity achieves its objectives, financial reporting, and reporting to interested parties within the entity who have the following two responsibilities:- a) Accountability of the entity & b) Strategic direction of the entity For Example: Various committees of Board of directors such as audit committee, share holders committee etc. Management refers to those persons within the entity who are having the executive responsibility comprising of officers and others who also perform senior managerial functions.. For example: Board of directors of the company. Though sometimes there is an overlap, those charged with governance should be preferably independent of management - they should be able to perform their duties / responsibilities without the undue influence of management / managerial personnel
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