Please help me in this assignment. Case study on Knight Transportation Inc. Knig
ID: 2332053 • Letter: P
Question
Please help me in this assignment.
Case study on Knight Transportation Inc.
Knight Transportation, Inc. (KTI), recognised by Forbes for its low operating ratios in the United States trucking industry, is setting standards in corporate governance.
To comply with the listing standards in New York Stock Exchange (NYSE), the company has put in place written charters for selection of independent directors, voting requirements for their election, and limiting executive compensation packages. The case talks about what role the Board of Directors can play in ensuring corporate governance standards during the growth of the company. The case examines in detail the corporate governance practices undertaken by the Board Committees and the strict adherence to the Generally Accepted Accounting Principles while preparing financial statements. Mandatory personal assurances by the top executives on the fairness of financial statements are also complied with. With stricter corporate governance standards, KTI is expecting to realise higher returns for its stakeholders.
Extract from IBS - Case Developmentcentre
http://www.ibscdc.org/Case_Studies/Corporate%20Governance/GOV0024B.htm - 20.08.2018
Questions:
1. The setting of standards in Corporate Governance by Knight Transportation Inc might prevent potential conflict of interests. Using examples, discuss the benefits firms get by adopting practices of good governance. (30 Marks)
2. In Knight Transportation Inc, the need for strict adherence to the Generally Accepted Accounting Principles while preparing financial statements has been highlighted. The Financial Reporting Act 2004 provides for the establishment of a Code of Conduct for all Professional Accountants which is consistent with the principles contained in International Federation of Accountants’ (IFAC) Code of Ethics. Professional Accountants are required to adhere to the fundamental principles enshrined in the Code of Ethics. Discuss the application of the fundamental principles of a Code of Ethics. (20 Marks)
Explanation / Answer
ANSWER:
A portion of the great administration rehearse pointers are as beneath:
clear lines of duties and a solid arrangement of responsibility in all periods of an organization tasks British american tobacco is known concerning its board viability, review, chance bested the great administration list in 2016.
load up autonomy and progression arranging organization's load up must be free as opposed to an offshoot of the administration infosys highlighted sen time for its load up assessment, authority, encounter progression arranging
code of morals Unilever is known for its great corporate administration hones for code of morals and business standards in the nations, that they work
pelf assessment is general electric set up administration standards to control not just its administrator and mard of chiefs in their exercises and basic leadership, yet. fill in as benchmark by which their execution might be assessed.
Benefits of good corporate government practice
constructs trust among open and worldwide for their transparrent and compelling parametrs.
improves supportability of the organization's execution.
empowers positive conduct among representatives
investors and money related foundations energetically such organizations for their business morals rules as better rates
check fumble not at all like a blunder which sought its bookkeeping acts of neglect, great corporate oversee expert influences the organization to have rules to check a such deceitful exercises
trustworthiness proficient bookkeeper to be straight forward a till legit in AI business hones.
objectivity: PA ought not take into consideration inclination strife intrigue,
classification: OAS must look after privacy. A perform procured because of expert and business connections
experts conduct: PA ought to embroil with pertinent laws a directions an ought to maintain a strategic distance from any activities acuna that calling