Improving Corporate Governance Quality Through Modern Controlling- Integrated Reporting in the German Two Tier System

Abstract

The purpose of this article is to describe the interdependencies between corporate governance and controlling for the German two tier system. In German listed corporations, the management board is responsible for the implementation and development of the controlling system, while the supervisory board has to review the effectiveness. After a theoretical funding of corporate governance an impact analysis based on the area of auditing, supervision and control will be focused. The main implications of the international integrated reporting project are presented. The analysis shows that the development of financial accounting and corporate social responsibility to an integrated reporting together with an increase in importance of controlling goes hand in hand. Controlling will form the central link between corporate governance quality and integrated reporting. After the financial crisis, integrated reporting can be classified as a key instrument to increase trust in the quality of corporate governance and accounting for global companies. Full