AUDIT AND FINANCIAL REPORTING

Audit and Financial Reporting



Audit and Financial Reporting

Answer No. A

To answer this question, we have chosen to analyze and evaluate the role of chairman and content of chairman's report of the Tesco Plc. The chairman of Tesco Plc is Sir Richard Broadbent. The role of a chairman in one of the largest retailer in Britain is considered as a major role and responsibility in corporate terms (BBC News Business, 2011, n.d.). As per the Corporate Governance code followed in UK, the roles and responsibilities of both chairman and chief executive officer should be clearly communicated and officially declared as decided by Board of directors.

The chairman of Tesco Plc is clearly responsible and accountable for leading the Board and the company. More particularly he should be involved in performing the following duties:

Ensuring effectiveness in terms of operations within the organization and board to comply with the desired standards of corporate governance. Ensuring efficient and effective level of communication with all stakeholders, government representatives, and several other significant partners or parties to organization and He must also assure that the board has comprehended the view points of all these relevant parties accurately, He is responsible to design and decide the topic of discussion and tone of meeting in order to encourage all attendants so that a well informed and through decision is made. The chairman is responsible for promoting and encouraging the ethical and business wise lawful behaviours and conducts within the organization.

He will be heading the Nominations committee and construct an effective and complementary board, he is also responsible for initiating change in the organisation forecasting future leaders. He will make sure that the committees are appropriately established, collected and thorough in execution plan. The chairman will ensure wide-ranging induction programmes for the newly appointed directors. He will support the Chief Executive Officer in chalking out the strategy and will largely advise the Chief Executive. He will also maintain the way in to the senior management of the company when required; nevertheless he will break in on the Chief executive responsibilities. He will also ensure the effective communication and healthy relationship between non-executive directors and the other members of the executive committee. He will also evaluate the performance of the board, committee and individual directors on annually basis. He will institute a pleasant and open relationship with the Chief Executive. (BG Group, 2013, n.d.)

In an effort to analyze the content of the chairman's report at Tesco Plc, the requirement of effective and efficient management and clear set of goals is highlighted to capture the new target market for Tesco. The competent skills to operate a business with a detailed understanding of market and product are considered as an essential element to grow. In addition, team work, good managerial skills, and recruitment or nourishment of new talent is also given importance throughout to combat operational complexities. The chairman has clearly emphasized upon Tesco's capability to bring about changes in the system and accept those changes gracefully to contribute ...