Question 6 (12 marks approximately 25 minutes) (a) In some countries, companies produce and abide their own very structured corporate governance provisions, but in some other parts of the world, the local culture was to allow local interpretation of the rules. Do we need to standardise the corporate governance standards? Explain. (4 marks) (b) Hong Kong Corporate Governance Code Section C.1 Financial Reporting states the principle is the board should present a balanced, clear and comprehensible assessment of company's performance, position and prospects. Why financial reporting is a critically important concern for good corporate governance? (4 marks) (c) All companies listed on the Hong Kong Stock Exchange are required to establish audit committees. Discuss how an audit committee and internal audit function can be served as a risk management mechanism of an entity. (4 marks)