Leadership pillars

Leadership pillars:

The governance elements of governance structures differ from one business unit to another and from one country to another and depend on various factors such as the legal and cultural environment of the country and the size and ownership structure of business units.

for example:

In some countries, there is a supervisory board in which all or the majority of its members do not have executive responsibility and are legally separate from the executive directors (two-board structure).
In some other countries, supervisory and executive duties are among the responsibilities of a single board (single board structure).

In some business units, management members have positions that are considered an integral part of the legal structure of the business unit, such as members of the company’s board of directors.
In other units, such as some public sector units, a separate board of that unit is responsible for management.

In some cases, some or all of the members of the governing bodies have executive responsibility in the management of the business unit.
In other cases, the members of the governing bodies are different from the executive directors.

In some cases, the governing bodies are responsible for approving financial statements (in other cases, this responsibility rests with the executive directors) (Paragraph T-1).
In most business entities, governance is the collective responsibility of a governing body, such as a board of directors, supervisory board, partners, owners, board of directors, board of trustees, or similar persons.

But in some smaller business units, there may be one person in charge of management.

In some cases, governance is a collective responsibility, it is possible for a subset of governance bodies such as the audit committee or even an individual to undertake a specific task to help the governance board fulfill their responsibilities.

On the other hand: a subset or a particular person may have specific legal responsibilities that are different from the duties of the management member (paragraph n-2).

Informing a subset of management elements:
If the independent auditor informs a subset of the governing bodies (for example, the audit committee with another person), he must determine whether it is necessary to inform the governing bodies as well (paragraph 12).

When reporting to a subset of management, the auditor may consider issues such as the following:

Responsibilities of its subgroup and management pillar
The nature of the matter to be notified
Relevant legal or regulatory requirements
Whether that subset has the authority to take action based on the information received and can provide more explanations and information that the auditor needs or not (Paragraph T-5).
The independent auditor, when deciding whether there is a need to inform the management board of the issues (completely or in summary) or not, it is possible that the effectiveness and appropriateness of informing the management board of the relevant issues by the subgroup evaluate

The independent auditor may specify in the audit contract that he retains the right to inform the management directly, unless he is prohibited from doing so according to the law or regulations (Paragraph T-6)

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