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The CISA® Prep Guide: Mastering the Certified Information Systems Auditor Exam by John Kramer

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7.1. Corporate Governance

Corporate governance is the system by which businesses are directed and controlled. The rights and responsibilities of running the company start at the top of the organization. They are subsequently distributed and managed effectively by formal development and deployment as a structure that spells out the policies and procedures for making decisions and declaring the corporation's directives in-line with the business culture and its mission and objectives. By doing this, a governance structure is established that results in the motivation of management and other persons who are deemed accountable to meet companies stated objectives, assuring that these objectives are attained through monitoring and incentive programs.

When evaluating these systems and the overall corporate governance infrastructure, you first must understand what objectives have been established for the business and by whom, and by what root authority that these goals have been established. What is the mission of the company? Is it documented, perhaps, along with a vision statement somewhere in the corporate literature? In order to assess how effective the governance systems are in ensuring an outcome, you will need to be able to articulate what that outcome is. Making money, some say, is the best, others will tell you. You will need to get an agreement from the organization's senior most management through some means in order to review the rest of the structure and ensure that their ...

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