Issues suggest the need for an oversight of management of a company includes:
- Bad accounting practices uncovered by the internal or external auditors suggest that the managers are not handling the finance of the company honestly. Oversight and
- Poor sales report or losses for an extended period of time suggest that management is not doing its jobs well. In the event of an economic crisis or other outside threats that management cannot control, the management team can be given a second chance to fix the problem.
- Conflicts between managers in meetings and decisions making require oversight to avoid internal problems.
- Unethical behaviors of employees such as thefts, embezzlement or frauds require major management oversight and improvement. Poor management leads to relaxed corporate governance which fosters crimes among employees.