An international regulatory framework for accounting is required in order to ensure that financial statements can be relied upon and that the information within financial statements is useful and relevant.

Corporate governance is the system by which organisations are directed and controlled. Corporate governance is important because it affects how decision makers act, how they can and should be monitored and how they can be held to account for their decisions and actions.

Required:

(a)Explain the role of each of the following organisations in the international regulatory framework for accounting: IFRS Foundation; IFRS Advisory Council; International Accounting Standards Board: IFRS Interpretations Committee.

(b) Critically discuss the role of audit committees in corporate governance