scholarly journals The new three lines model for structuring corporate governance – A critical discussion of similarities and differences

2021 ◽  
Vol 18 (2) ◽  
pp. 180-187
Author(s):  
Marc Eulerich
Keyword(s):  
Corporate Governance ◽  
Governance Structure ◽  
Critical Discussion ◽  
Practical Implementation ◽  
Corporate Management ◽  
Corporate Governance Structure ◽  
Internal Auditors ◽  
The Past ◽  
Similarities And Differences ◽  
Effective Organization

The efficient and effective organization and coordination of corporate governance activities is still one of the major challenges of modern corporate management. For many years, it was precisely the so-called three lines of defense model that was used to structure governance functions. However, as more and more open points of discussion regarding practical implementation have emerged over the past years, the three lines model was published in 2020 as a fundamental update by the Institute of Internal Auditors (IIA). This article presents the new model and critically discusses the similarities and differences to the existing model. Thus, this article contributes to the current discussion of best practices regarding corporate governance structure and the fundamental issues of efficient and effective oversight. Both practitioners and researchers should benefit from the critical analysis of this paper.

scholarly journals Drivers of Audit Failures: A Comparative Discourse

2020 ◽  
Vol 5 (7) ◽  
pp. 133-138
Author(s):  
Etim, E. Osim ◽  
Comfort Precious Goddymkpa ◽  
Nsima Johnson Umoffong
Keyword(s):  
Governance Structure ◽  
Corporate Management ◽  
External Audit ◽  
Corporate Governance Structure ◽  
Internal Auditors ◽  
Audit Failure ◽  
External Auditors ◽  
Study Approach ◽  
Audit Approach

The aim of this study is to identify the most potent factors driving audit failures by theoreticallyexploring two most publicized corporate and external audit failures cases in Nigeria and globally (EnronAndersen and Cadbury Akintola Williams Deloitte). An exploratory case study approach was adopted to analyze the selected two cases and several other external audit failures in extent literature. Findings reveal that audit failure factors are the same in the cases analyzed and compared and include poor audit approach, negligence and incompetency from the auditors, lack of professional questioning attitude, connivance with clients, fee dependence on major clients, long tenured appointment, external auditors acting as internal auditors to client and rendition of Management Advisory Services (MAS), blatant disregard to accounting standards on auditing, among others. Based on these findings, the following recommendations were made: more stringent sanctions be molted to defaulters, regular review and update of accounting and auditing standards to take care contemporary developments, prohibition of external auditors from rendering multiple MAS, adherence to ethical principles, strengthening of corporate governance structure as well as improved oversight functions by regulatory authorities on the activities of corporate management and auditors.

CORPORATE GOVERNANCE IN THE 19TH CENTURY: EVIDENCE FROM THE CHESAPEAKE AND OHIO CANAL COMPANY

2009 ◽  
Vol 36 (2) ◽  
pp. 113-137 ◽  
Author(s):  
Robert W. Russ ◽  
Gary John Previts ◽  
Edward N. Coffman
Keyword(s):  
Corporate Governance ◽  
19Th Century ◽  
Annual Report ◽  
Governance Structure ◽  
Review Committee ◽  
Corporate Governance Structure ◽  
Theoretical Structure ◽  
The 19Th Century ◽  
The U.S

Presenting evidence from a 19th century corporation, the Chesapeake and Ohio Canal Company (C&O), the paper shows that issues of corporate governance have existed since the first corporations were established in the U.S. The C&O used a stockholder review committee to review the annual report of the president and directors. The paper shows how the C&O stockholders used this committee to supplement the corporate governance structure. The corporate governance structure of the C&O is also viewed from a theoretical structure as espoused by Hart [1995].

THE STOCKHOLDER REVIEW COMMITTEE OF THE CHESAPEAKE AND OHIO CANAL COMPANY, 1828–1857: EVIDENCE OF CHANGES IN FINANCIAL REPORTING AND CORPORATE GOVERNANCE

2006 ◽  
Vol 33 (1) ◽  
pp. 125-143 ◽  
Author(s):  
Robert W. Russ ◽  
Gary J. Previts ◽  
Edward N. Coffman
Keyword(s):  
Corporate Governance ◽  
19Th Century ◽  
Financial Reporting ◽  
Financial Management ◽  
Governance Structure ◽  
The Political ◽  
Review Committee ◽  
Corporate Governance Structure ◽  
Corporate Form ◽  
The 19Th Century

Canal companies were among the first enterprises to be organized in the corporate form and to require large amounts of capital. This paper examines the stockholder review committee of a 19th century corporation, the Chesapeake and Ohio Canal Company (C&O), and discusses how the C&O used this corporate governance structure to monitor and improve financial management and operations. A major strength was the concern and dedication of the stockholders to the company, while a major weakness was the political control exerted by the State of Maryland. The paper provides an historical perspective on corporate governance in the 19th century. This research contributes to the literature by providing detailed workings and practices of a stockholder review committee. The paper documents corporate governance efforts in archival sources that provide an early example of accountability required in a corporate charter and the manner in which the stockholders carried out this responsibility.

TRANSFORMATION OF THE INTERNAL AUDIT IS AN EFFECTIVE WAY TO INCREASE THE CONTRIBUTION TO THE SUSTAINABLE DEVELOPMENT OF A BUSINESS ENTITY

2021 ◽  
Vol 2 (2) ◽  
pp. 114-119
Author(s):  
PHAN THI THANH QUYEN ◽  
Keyword(s):  
Sustainable Development ◽  
Business Model ◽  
Significant Contribution ◽  
Internal Audit ◽  
Governance Structure ◽  
Sustainable Business ◽  
Corporate Governance Structure ◽  
The Sustainable Development ◽  
Internal Auditors

The role of internal audit in ensuring sustainable development of economic entities is indisputable. How-ever, the biggest challenge faced by internal auditors is how the level of their contribution can truly be weighed against the ability and role recognized by society, especially as most economic actors move from a traditional business model to a sustainable business model. The article highlights the main approaches to the transfor-mation of internal audit in order to make it an integral part of the corporate governance structure and make a significant contribution to sustainable development.

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