Who is considered to be part of 'those charged with governance'?

'Those charged with governance' refers to individuals or groups who are responsible for overseeing the strategic direction of the organization and its accountability, including the appointment of the management team. This role generally encompasses the board of directors and can include various committees such as the audit committee.

The directors have the fundamental responsibility for the organization's activities, performance, and governance. They are tasked with making key decisions and ensuring compliance with legal and regulatory requirements. The audit committee, which is often formed from among the board members, plays a crucial role in overseeing the financial reporting process, the internal control system, and the audit process itself. This committee's activities often involve a direct interaction with the auditors to ensure that appropriate standards are met and to discuss the findings and recommendations resulting from audits.

In contrast, shareholders, while important stakeholders, do not engage in governance at the operational level but rather exercise their governance rights primarily through voting. Similarly, the financial auditor and tax advisor serve external roles that do not involve governance but rather focus on compliance and advisory functions. The executive team is responsible for the day-to-day management of the organization, reporting to the board rather than being part of the governance framework itself. Therefore, the identification of directors and audit committee members effectively captures the essence of 'those