First and foremost, Newcrest has a high standard of corporate governance that is critical to help Newcrest in achieving high performance as well as conformance to the specific standards, rules and regulations. Newcrest’s effective distribution of rights and responsibilities among different participants such as the board, managers, shareholders and other stakeholders have enhanced their economic performance and public trust. It is important for Newcrest to clarify their code of conduct, rules and procedures for making corporate decisions on corporate affairs. Effective corporate governance provides a structure or framework for Newcrest in setting its objectives, the means of attaining those objectives, monitoring performance and rewarding the outperformers.
Moreover, Newcrest’s Board of Directors plays an important role in determining Newcrest’s strategic direction, reviewing the appropriateness of it regularly and overseeing its implementation. They are acting on behalf their shareholders; therefore, they…show more content… On the other hand, there is inadequate oversight of internal audit function in Newcrest. But, there is an independent process practised by the audit committee members. They have access to Newcrest’s external and internal auditors without management present. There is no any information disclosed about the review of internal audit function whether their current station against the specific standards or guidelines. The audit committee should have an oversight checklist that is considered the base level of what constitutes adequate oversight of internal audit. Throughout this, Newcrest’s internal audit function will help Newcrest accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance
