For directors
Legal compliance & fiduciary duty: Satisfies statutory duties of care, skill, diligence, and acting in the best interests of the company.
Personal liability protection: Reduces risk of civil/criminal liability, fines, and disqualification for breaches (e.g., improper dividends, late filings).
Financial reporting integrity: Ensures timely, true-and-fair financial statements, proper records, and required disclosures.
Sound governance & oversight: Strengthens internal controls, board processes, and accountability to shareholders.
Capital market access: Builds lender/investor confidence, lowering cost of capital and easing fundraising.
Continuity & solvency: Encourages prudent decisions (e.g., solvency tests, going-concern focus) that protect the company’s longevity.
Reputation & stakeholder trust: Avoids enforcement actions and reputational damage with regulators (SSM), customers, and partners.
For auditors
Statutory mandate: Fulfilling appointment, independence, and reporting obligations required by CA 2016.
Audit quality & credibility: Aligns with law and standards, producing a defensible opinion and limiting professional negligence exposure.
Independence & ethics: Preserves objectivity (e.g., limits on relationships/services), enhancing public-interest protection.
Proper reporting of non-compliance: Enables appropriate communication to those charged with governance (and where required, to authorities).
Professional standing: Sustains licence to practise and reputation with MIA/PIE stakeholders; avoids sanctions.
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