Here is an article on corporate Governance and fraud. I need to evaluate the connection and give an opinion. Thoughts?
CORPORATE GOVERNANCE AND FRAUD: AN ARTICLE REVIEW
The article started with providing a background on the crises or difficulties that need to be addressed: corporate accounting scandals, need for transparency and honesty in reporting, and public demand for change and improvements in the system of reporting.
The author also emphasized the need for professionals to be competent enough to be able to identify and prevent weaknesses in three areas: poor corporate governance, flawed internal controls, and fraudulent financial statements. Related to this, a hypothesis of the author may be deduced: That there is a link between accounting failures or fraud and poor corporate governance.
Some related studies were cited indicating poor corporate governance. Among the findings of the said studies that were cited include the following:
1. Poor corporate governance is a leading factor in poor performance.
2. There have been manipulated financial reports.
3. Poor corporate governance made the stakeholders unhappy.
While companies aim to meet the interest of investors and various stakeholders through companies' own governance codes, reporting systems, and internal control systems, the following problems were identified:
1. Lack of a well-developed and ...
Practical research corporate governance is examined.