CAT / FIA FFA Syllabus A. The Context And Purpose Of Financial Reporting - Governance in preparation of financial statements - Notes ^{1 / 2}

Corporate governance was defined by the Cadbury Committee  as: 'The system by which an organisation is directed and controlled, at its most senior levels, in order to achieve its objectives and meet the necessary standards of accountability and probity.'

Corporate governance is not solely about introducing systems of control, it is fundamentally linked to directing the organisation in order to achieve objectives. This is critical to the success of the organisation and is a central part of the role of the board of directors