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AC341 Corporate Governance, Risk Management and Financial Audit (Half Unit)



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What constrains the behaviour of profit-seeking corporations? What are the regulations that seek to prevent corporate disasters? This course attempts to answer these questions by critically examining the institutional and legal landscape of governance and accountability in which corporations operate. It takes students on a deep dive into the day-to-day practices of those charged with financial control and risk management within the organization. In addressing the financial accountability of corporations to their external stakeholders, the course critically evaluates the theory and practice of external financial audit, highlighting the structure of the market for audit, the practices of audit firms and the limits to the effectiveness of audit.

Some of the questions we will be asking are:

- How do organizations try to control operational and financial risk?
- What do studies about corporate disasters tell us about risk management? (e.g., the cases of Challenger and Boeing 737 Max)
- To what extent does current risk management address global phenomena such as pandemics
- What does a chief risk officer really do and why?
- Given recent financial collapses (e.g. Carillion), what’s the point in corporate financial audit?
- How should auditors respond if the viability of many businesses is uncertain (e.g. as a result of the Covid-19 lockdown)?
- How might technology disrupt the market for risk management and corporate financial audit

The course will critically evaluate academic studies and practitioner guidance to establish the “rules of the game” for corporate governance and accountability, but also will examine media coverage of corporate governance and auditing. Senior practitioners will come to speak to students during the course, offering insights into the practice of risk management and auditing and providing opportunities for students interested in careers in these fields to learn about what these might entail. It should be noted that the course is grounded in the social sciences – it does not provide practical training in the application of risk management or auditing techniques and is not recognized for exemptions by the professional accountancy bodies.
Category
Management
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