An audit of governance is to obtain the opinion of the Board of Directors regarding principles of governance, key management and board processes.
One of the main purposes of the Board is to develop and implement various governance principles and decision processes in order to:
- Make sure that fundamental rights of stakeholders, members, shareholders or other people of interest are protected;
- Verify that global vision and strategic plans are appropriate;
- Ensure that appropriate financial resources and people are in place to meet short and long terms objectives.
- Ensure compliance with high standards of governance and risk management;
- Verify that the management of human and financial resources meets the criteria of economy, efficiency and effectiveness;
- Conduct annual review.
Thus, members of the Board of Directors have a responsibility to guide and control and in this sense the Board of Directors is the principal while the senior management has the responsibility of executing plans and achieving objectives.
FOUR FONDAMENTAL ELEMENTS OF THE GOVERNANCE
Each organization, company, association, society, institution must develop their own governance, taking into account their mission, structure, ownership, size, age, etc.
We recommend conducting an empirical and confidential audit with the Board of Directors.