Smith Report
Encyclopedia
The Smith Report was a report on corporate governance
submitted to the UK government in 2003. It was concerned with the independence of auditors in the wake of the collapse of Arthur Andersen
and the Enron scandal
in the US in 2002. Its recommendations now form part of the Combined Code
on corporate governance, applicable through the Listing Rules for the London Stock Exchange
.
It was substantially influenced by the views taken by the EU Commission. One important point was that an auditor himself should look at whether a company's corporate governance structure provides safeguards to preserve his own independence.
Corporate governance
Corporate governance is a number of processes, customs, policies, laws, and institutions which have impact on the way a company is controlled...
submitted to the UK government in 2003. It was concerned with the independence of auditors in the wake of the collapse of Arthur Andersen
Arthur Andersen
Arthur Andersen LLP, based in Chicago, was once one of the "Big Five" accounting firms among PricewaterhouseCoopers, Deloitte Touche Tohmatsu, Ernst & Young and KPMG, providing auditing, tax, and consulting services to large corporations...
and the Enron scandal
Enron scandal
The Enron scandal, revealed in October 2001, eventually led to the bankruptcy of the Enron Corporation, an American energy company based in Houston, Texas, and the dissolution of Arthur Andersen, which was one of the five largest audit and accountancy partnerships in the world...
in the US in 2002. Its recommendations now form part of the Combined Code
Combined Code
The UK Corporate Governance Code 2010 is a set of principles of good corporate governance aimed at companies listed on the London Stock Exchange. It is overseen by the Financial Reporting Council and its importance derives from the Financial Services Authority's Listing Rules...
on corporate governance, applicable through the Listing Rules for the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
.
It was substantially influenced by the views taken by the EU Commission. One important point was that an auditor himself should look at whether a company's corporate governance structure provides safeguards to preserve his own independence.
See also
- Combined CodeCombined CodeThe UK Corporate Governance Code 2010 is a set of principles of good corporate governance aimed at companies listed on the London Stock Exchange. It is overseen by the Financial Reporting Council and its importance derives from the Financial Services Authority's Listing Rules...
- Cadbury ReportCadbury ReportThe Cadbury Report, titled Financial Aspects of Corporate Governance, is a report of a committee chaired by Adrian Cadbury that sets out recommendations on the arrangement of company boards and accounting systems to mitigate corporate governance risks and failures. The report was published in 1992...
(1991) - Greenbury ReportGreenbury ReportThe Greenbury Report released in 1995 was the product of a committee established by the United Kingdom Confederation of Business and Industry on corporate governance. It followed in the tradition of the Cadbury Report and addressed a growing concern about the level of director remuneration...
(1995) - Hampel ReportHampel ReportThe Hampel Report in 1998 was designed to be a revision of the corporate governance system in the UK. The remit of the committee was to review the Code laid down by the Cadbury Report . It asked whether the code's original purpose was being achieved. Hampel found that there was no need for a...
(1998) - Turnbull ReportTurnbull ReportInternal Control: Guidance for Directors on the Combined Code also known as the "Turnbull Report" is a report drawn up with the London Stock Exchange for listed companies. The committee which wrote the report was chaired by Nigel Turnbull of The Rank Group plc...
- Higgs Report (2003)
External links
- Smith Report (in full)
- General page by the Financial Reporting CouncilFinancial Reporting CouncilThe Financial Reporting Council is the UK's independent regulator responsible for promoting high quality corporate governance and reporting to foster investment.-Structure:...