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NAFTs ‘Annus Horribilis’: Fraud and Corporate Governance
Author(s) -
CORDERY CAROLYN
Publication year - 2007
Publication title -
australian accounting review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.551
H-Index - 36
eISSN - 1835-2561
pISSN - 1035-6908
DOI - 10.1111/j.1835-2561.2007.tb00444.x
Subject(s) - corporate governance , accounting , business , stock exchange , order (exchange) , liability , finance
Using a case study of National Australia Bank, this paper explores the challenges in complying with the Australian Stock Exchange's Principles of Good Corporate Governance and Best Practice Recommendations. In 2004 NAB announced foreign exchange losses of $A360 million, following which the board engaged in a public dispute over liability for the losses. There were indications that the board had failed to provide an appropriate structure to encourage ethical behaviour, and had ineffective internal controls. The aim of the case study is to generate an understanding of structural pitfalls in order to lead to the improvement of corporate governance in practice.