– Corporate governance comparison of approaches – public v private sector
– Conflict of interest and independence
– Stakeholders and stakeholder claims
– Effective internal control systems
– Function and importance of internal audit
– Risk correlation and strategies for management of such risks
– Ethical standpoints and their application to business decision
– Corporate codes of ethics critique and improvements
– Tucker’s ethical decision making model
– CSR – comparison of approach (profit and not for profit organisations)
– Integrated reporting
For this sitting, you can probably expect to see content on two new areas added to the syllabus for exams from December 2014 onwards – Public sector governance and Integrated reporting.
You can also expect to see the use of Ethical and CSR theories applied to scenarios, as well as the use of risk and governance syllabus content – you should be aiming to revisit as many past-paper questions as possible as we are starting to see exam requirements that have been examined before.
Candidates should also take heed of the examining team’s recently published article content for P1 when preparing for this exam – at time of going to press, this included two articles on public sector governance, but keep checking to make sure you have seen any last minute additions.
– Role of Board.
– Unitary/two tier.
– Chair role/CEO chair split.
– Induction/Performance appraisal.
– Reward systems.
– Family based structure.
– Global standards in governance.
– Stakeholder classifications.
– Objectives of a sound system.
– COSO failures.
– Reasons for internal audit.
– Internal control disclosure.
- Risk management:
– Risk committee or risk manager.
– Strategic/op/static and dynamic risk.
– Risk diversification.
– Absolute/relative, consequential.
– Grey, Owen and Adams.
– AAA model or Tucker
50 mark scenario question, to include: ethics, AAA model, rules v principles governance also corporate social responsibility.
Optional questions to include: Importance of internal controls, NEDs and remuneration committee and structure of directors remuneration, business risks, Gray Owens and Adams.
These are important areas to study
– Public sector governance
– Board diversification
– Environmental accounting and reporting
– COSO enterprise risk management
– Integrated reporting
– Corporate governance (CG) concepts, underlying fundamentals and arrangements.
– CG in other organisations (e.g. public sector, NGOs).
– Types and forms of CG (e.g. rules based, principles based, insider, outsider systems, UK Corporate Governance Code, SoX).
– Agency theory, stakeholders, Mendelow.
– Board structures, CEO/chairman, directors, NEDs, committees.
– Internal control and business risk, Turnbull.
– Ethical theories and business codes – Kohlberg, Gray, Owen and Adams, Tucker, AAA.
– Professions and the public interest.
– Corporate social responsibility, corporate citizen, footprints and sustainability.
– Integrated reporting, social and environmental auditing.
That just about covers the syllabus.
– COSO’s Enterprise Risk Management Framework – ACCA article but has not previously been examined.
– Public sector corporate governance is new to the syllabus and has 2 ACCA articles.
– Increasing responsibilities of non executive directors with regard to risk.
– An holistic approach to corporate governance (stakeholders).
– Environmental and social accounting.