External auditing has changed to accommodate the changes in corporate Essay

External auditing has changed to accommodate the changes in corporate governance in the UK and other countries such as South Africa, Australia, US, India and China - Essay Example days as to how the level of trust can be improved in our communities in regards to the governance bodies of companies, aboriginal communities and charitable corporation. While there are many debates that are presently in progress, the most important ones are playing out in global communities, with other companies taking lead from there (Demb & Neubauer 2002, pp.9). By understanding the different point of views and underlying rationales can help the board of directors to develop practices and policies that improve the governance of their organization and thus improve community’s trust in the organisations leadership. (Conti & Warner 2006, pp. 12). This paper is based on good corporate governance that should be adopted by all the companies and the role of different mechanisms of corporate governance. Furthermore, evaluation of the importance of corporate governance, its pros and cons and analysis has also been discussed. The process by which direction is given to the organization i known as corporate governance. With regards to this, control is implemented on the company and it is held to account. Therefore, it can be said that factors such as accountability, leadership, authority, direction, stewardship are controlled by corporate governance when control is implemented in an organization. The reason why the definition seems balanced is because it ensures that the checks and balances are employed during the process. This is the reason why it can be considered as a comprehensive definition with regards to corporate governance. The aim of implementing corporate governance is to attract the investors as well as the managers to ensure that the companies care about the profits that are generated. Moreover, it also develops a relationship between the internal governance mechanisms of the organization as well as the idea of the community with regards to corporate accounting. Therefore, corporate governance increases the confidence of the investors and to facilitate the