In the first instance, the information provided enables the board to monitor the performance of the company on the crucial issues in question. This includes compliance, performance against targets and the effectiveness of existing controls. By being made aware of the key risks and internal control issues at the operational level, the board can work to address them in the most appropriate way.
The board also needs to be aware of the business impact of operational controls and risks to enable us at board level to make informed business decisions at the strategic level. If the board receiving incomplete, defective or partial information then they will not be in full possession of the necessary facts to allocate resources in the most effective and efficient way possible.
The board has the responsibility to provide information about risks and internal controls to external audiences. Best practice reporting means that they have to provide information to shareholders and others, about the systems, controls, targets, levels of compliance and improvement measures and they need quality information to enable us to do this.
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