This enables authorities to analyse comparability of national accounting and auditing standards with international standards and to develop and implement a country action plan to strengthen the country’s corporate financial reporting regime. In addition to that, well-functioning financial markets require accurate information to ensure the efficient allocation of capital and other productive resources in the economy.
Market participants need to have confidence that the system of financial exchange is transparent and fair. The market system depends on trust, and in this regard, good corporate governance is critical to ensure economic and financial stability as a breakdown in governance could significantly erode business efficiency.