PART A: Compulsory questionQuestion 1
Among the recent concerns on the failure of corporate governance is the collapse of big business corporations such as Enron, Polly Peck and Baring. Various reasonssuch as lack of monitoring by the relevant parties including board of directors andexternal auditors have been attributed to such a failure. Provide, and briefly discuss,
governance mechanisms which could be instituted to enhance the monitoringsystem in a business organization.(9 marks)b.
Apart from the collapse of big business corporations, briefly discuss
otherrecent concerns on the failure of corporate governance
(You could refer toWhittington (1993) for the recent concerns on the failure of corporate governance)
The issue of transparency of information has been viewed as one of the importantaspect of corporate governance. Discuss the link between financial reportingfunction and corporate governance
. Based on Whittington (1993),discuss in detail, the following two issues related to the systemic problems of corporate governance, with regard to financial reporting:a.
Demand of information
In the year 2000, Malaysia introduced its own Malaysian Code of CorporateGovernance (MCCG) in an attempt to improve the level of corporate governance tobe at par with the international standards. Later in the year 2001, theserecommendations in the MCCG became mandatory requirements for all publiclisted companies by Bursa Malaysia. Do you think such institution of corporategovernance requirements as mandatory compliance will help improve the level of corporate governance in Malaysia? Briefly justify your answer.(3 marks)
(Total: 34 marks)