DISCLOSURE OF ACCOUNTING INFORMATION, CORPORATE GOVERNANCE AND ORGANIZATIONAL CONTROL: A NECESSARY RELATIONSHIP

Abstract

Accounting information is a source for decision making and as such, its quality is essential to those users who are interested in economic performance of a company and its future potential for generating income and profit. In this context, despite the phenomenon known as information asymmetry that exists between internal and external users of information there is a common interest in the usefulness of information in decision making processes and making personal decisions, In light of this, based on a review of the literature this study proposes a reflection on the mechanisms of reducing information asymmetry between external users of accounting information and the upper administration of a company and furthermore, an analysis of the mechanisms that are used to minimize the possible risks to those that are also exposed by not having participated in the implementation of all the decisions made, as well the register of the ensuing results. The study concludes with a proposal that if the company adopts the mechanisms suggested – corporate governance, organizational control, mainly information systems and internal control, and observes the attributes necessary for maintaining quality of information, according to competent agencies, it will be able to minimize informational asymmetry among its users, and also guarantee the quality of the information released to them.