Mazars: European background increases the requirements for reliability and effectiveness corporate governance
3.06.2008, 10:42
Prague 3 June (PROTEXT) - The Czech Republic is preparing to implement intoCzech law the amended ES 2006/43 regulation. Beside the new regulationregarding companies trading on the stock market, which came into effectlast year, it is preparing an amendment to audit law that should influencepublic interest entities as well as the profession of auditors.
Continuous harmonization of Czech legislation with European legislationposes other calls on reinforcement of internal control mechanisms andcorporate governance within public interest entities. "The credibility andfinancial stability of a company does not only apply to financial ratioscalculated at certain historical date, but also to the reliability andefficiency of the internal processes, the internal controls and the qualityof the corporate governance of the company as a whole," states JanaŠvenková, partner of the audit and advisory firm Mazars.
The last events around the world and in the Czech Republic, especiallynewly disclosed embezzlements and frauds within companies show theimportance of management and control of firms. The newly prepared amendmentto audit law should oblige public interest entities to set up an auditors’committee. Its role should consist, among other things, to assess theefficiency of internal controls and the management of risk system.
About how much attention do managers of the biggest Czech and Slovakcompanies dedicate to this area? And how reliable are the internal controlswithin these firms? Mazars will present the collected answers in June 2008,when the results from its specialized study in Czech Republic and Slovakiais published.
Contact information:
Jana Švenková, Mazars
tel.: +420 224 835 730
e-mail: jana.svenkova@mazars.cz
Subscribers please note that material bearing the label "PROTEXT" is notpart of CTK's news service and is not to be published under the "CTK"label. Protext is a commercial service providing distribution of pressreleases from clients, who are identified in the text of Protext reportsand who bear full responsibility for their contents.
PROTEXT