Question

differentiate between the internal and external corporate governance control?

Answer 1

Internal Governmance Control :

Internal control, as defined by accounting and auditing, is a process for assuring of an organization's objectives in operational effectiveness and efficiency, reliable financial reporting, and compliance with laws, regulations and policies.

External Governmance Control :

External control mechanisms are controlled by those outside an organization and serve the objectives of entities such as regulators, governments, trade unions and financial institutions. These objectives include adequate debt management and legal compliance.

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Answer 2

Internal and external corporate governance control is the type of government control that is used to govern the functioning of the system.

Detailed answer

In external corporate governance, it is controlled by entities that are outside the organization.

• These include financial institutions, regulators, trade unions are the organizations that function outside these functions include financial control, legal compliance, and debt management
• External organizations may provide tips, guidelines for efficient performance and the organization can decide whether to select this or not.
• The internal mechanism includes oversight of management, independent audits are carried out.
• They help in smooth operations and performance monitor at every point.
• .