ACC311 Accounting Theory and Current Issues Semester 1, 2019 Assessment 2: Essay 2 This assessment is worth 25% of your final grade and is to be in essay form. Essay length is 1,500 words. Due Date:...

Introduction:
Corporate Governance is the rules and regulation and collection of processes in the corporation by which the management are controlled and operated. It identifies the principles regarding the distribution of the rights and duties among the different people in the management such as directors, employees, creditors, auditors and other related people. It helps in making the rules and the regulations in the entity which helps in the decision making process. Corporate governance ensures a balance between the interest of the investors, suppliers, debtors, government and the society. It generally provides the framework that enables the company to achieve its objective and ensures internal control in the business activity and also ensures that the company is complying with its corporate social responsibilities. Thus corporate governance is an important part for any entity that sets out the rules and regulations through which the business are managed and controlled.
Corporate Governance and organizational Structure:
It is evident that there exists a inherent problem of the separation of ownership and managerial control which also have affect on the corporate governance of the company. The structure has great effect on the corporate governance as organizational structure is having great impact on the corporate governance. When an organization has structure in which there is no separation between the ownership and the managerial control then such organization have weak corporate governance and there exists high chances of the fraudulent activities as there is no proper segregation of the duties and the owner of the business is accountable for the decision making and thus exists a high chances of fraudulent activities and chances of deriving personal benefits as foremost objective of the business. Thus to have good corporate governance the organization should distribute the ownership and control of the business among the shareholders. Thus due to the separation of the control and ownership of the company it will lead to the unbiased decision making and the main objective will be the interest of the business not personal interest and it will have reduction in the fraudulent activities of the business and thus ensures good corporate governance practices. But where it is not possible to separate ownership and managerial control it will have negative impact on the corporate governance as in this case the policies and procedures can be influenced by the personal interest of the owners and there is no proper control in the activities of the business. The separation of the owners and the managerial control in any organization will gradually have segregation of the duties and will ensure proper accountability among the personnel and the owners and proper delegation of the duties which will reduce the fraudulent activities and will ensure check on any informational gap and fraudulent activities and thus will ensure good corporate governance. Hence it is evident that the organizational...