Disclosure of

information such as
Methods that ensure that Market need to operate insider trading protects
managerial actions lead efficiently only when the small investor to
to shareholder value investing public has some extent from the
maximization and do not faith in market system negative consequences
harm other stakeholder of information Opportunistic Takeover Defense
groups and that are asymmetry. Behaviour Constraint Tactics
outside the control of the
corporate governance M E D I A A N D P U B L I C
system. A C T I V I S T S

Help ensure good

corporate governance M A R K E T
by developing efficient M I N D M A P
crisis-management
F O R
plans to be used in C O R P O R A T E
the event of C O N T R O L
allegations of
corruption or fraud

EXTERNAL I N S T I T U T I O N A L
E X T E R N A L A U D I T O R
GOVERNANCE I N V E S T O R S

RESPONSIBILITIES ADVANTAGES MECHANISMS R E G U L A T O R Y

To provide assurance that
the corporation is in
rational compliance with
relevant laws and
regulations
Conducting its
affairs fairly
Maintaining effective
controls against
employee conflict of
interest and fraud
synergies which are coming B O D I E S
from “knowledge spillovers”
between the outsourcing of
specific audits and which would All Corporations are
generate a more understanding subject to some
financial statement audit regulations by the
government. The extent
of regulation is often
the fact that the external
function of the type of
auditor’s expertise of the client’s B A N K S A N D
industry.
accounting systems and A N A L Y S T S
functions facilitates collaborative
efforts between the internal and Commercial and
external auditors – which, in turn, investment banks have
generates greater efficiency lent money to
corporations, so they
have to ensure
borrowing firm's
the external auditor’s expertise finance are in order and
of the client’s accounting loan covenant are being
systems, probably will reduce the Environ-
Values Culture followed
risk of “budget overruns” ment

A P R I D A R I Z K Y
M E R L I N