TransEquip Solutions Company has operations in the UK and the US and is listed in both countries. It is engaged in the manufacturing and supply of transport equipment. The company has recently missed many lucrative business opportunities because of the lack of performance management and poor decision making of the top management. Recently, a new board of directors has been elected. The board is looking closely into the corporate governance of the company and currently focusing on introducing some operational changes with the aim of recouping lost opportunities and minimizing such occurrences in the future. The existing top management considers the weak management accounting system of the company to be a reason for missing opportunities and has shared the following concerns with the new board members:
• An inadequate number of management accountants engaged by the company.
• Management accountants make insufficient effort to understand the functioning of the business and directions given to them.
• Management accountants are not given access to relevant financial and operational data that would enable them to provide input for decision making for decision making.
• Management accountants are disinterested in utilizing new technologies that would make them more efficient. The new board analysed last year’s performance data. It found that the company has faced tough competition because of incompetent strategies adopted by top management and raised the following concerns:
• Top managers are pursuing their own interests rather than shareholders’ interests.
• Top managers are reluctant to devise new strategies.
• Top managers are more worried about their reputation than the downside of their chosen strategies.

Required
1. The new board of directors is in the process of outlining sound practices required for improving the company’s market performance and its corporate governance. As Trans Equip Solutions Company is listed in the UK and the US, it has to comply with the regulatory requirements of both the Corporate Governance Code and the US Sarbanes–Oxley Act 2002. Discuss the role of its management accountants in the financial perspective on corporate governance.
2. Briefly explain how strategic management accounting techniques can help top managers develop a unique company strategy to challenge its competition.
3. The board has made a serious note concerning flaws in the company’s corporate governance and lack of proper management accounting system. The new board is planning to manage risk by establishing effective internal controls in the organization. Explain the points to be considered by Trans Equip Solutions as it establishes sound internal controls.