Executive summary: The purpose of this thesis is to study internal control compliance and how it affects a company’s corporate governance. Furthermore, the thesis investigates what responsibility Board of Directors has in relation to internal control. Board of Directors is the companies leading team and has the responsibility for internal control. In Denmark are internal control specially discussed as a result of OW Bunkers A / S bankrupt in November 2014. Focus is specially related to the Board of Directors responsibilities regarding identifying risk through internal control and what they could have done to avoid the bankrupt. In this relation it have been discussed how effective and supporting the company´s internal control was and Board of Directors responsibility to respect identified risk and act according to the companies policies. Corporate governance is setting guidelines, policies and gives the expectations for internal control in the company. The purpose of this work is making internal control as a supporting function in compliance. Internal control supporting effect is partly related to the resolutions the company take and the company's growth opportunities. Based on work with the financial statements, companies must be audited and cooperation with the auditor is therefore important for the company. Auditor has the role of public interest and has to get the conviction of fair view in the financial statement. In this process effective internal control can base the auditor audit more on internal controls and less substantive audit. In this connection the companies auditor cost will be reduced. To obtain the effective internal controls that can support corporate governance, cheaper audit cost and fair view of financial statements is compliance important. It helps the business to growth, risk management and return. Internal control is a good strategic investment. The thesis will examine how effective internal controls support the company’s corporate governance and audit. The study is based on applicable law for the area and acceptable framework for internal control.
|Educations||MSc in Auditing, (Graduate Programme) Final Thesis|
|Number of pages||84|