Poisoned Chocolate? Corporate Governance and the Cadbury Report

Abstract

The failure of many important UK companies during the last five years brought to the fore an area which has been of concern to Internal Audit for many years: namely, how can we ensure that corporations are managed properly? On 1 December 1992 the Cadbury Committee on the Financial Aspects of Corporate Governance issued its report. Examines the report′s recommendations from the viewpoint of internal audit and suggests that there are fundamental flaws in its recommendations which effectively reduce the status of internal audit. Suggests a novel approach to overcoming the problem of audit independence by providing the audit committee with a budget to employ internal audit directly.

Citation

Mitchell, J.A. (1993), "Poisoned Chocolate? Corporate Governance and the Cadbury Report", Managerial Auditing Journal, Vol. 8 No. 3. https://doi.org/10.1108/02686909310036250