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What is the main purpose of a Code of Business Conduct and Ethics for corporate boards?

To establish hiring criteria for new directors

To ensure competitive advantages in the market

To provide standards for professional and ethical behavior (correct)

To outline financial performance targets

What does Ethics Intelligence enable internal auditors to do?

Develop new business strategies

Implement cost-cutting measures

Identify financial discrepancies in reports

Discern ethical implications in issues (correct)

When faced with an ethical dilemma, what is an appropriate course of action?

Make a decision based solely on personal interests

Seek advice from a professional body or legal counsel (correct)

Ignore the issue and wait for it to resolve itself

Consult with colleagues for informal guidance

Why is it important for directors to apply high ethical standards?

To consider the interests of all stakeholders Signup and view all the answers

How must corporations vested with public interest report their directors' performance?

By submitting a appraisal or performance report to the SEC Signup and view all the answers

What is the primary responsibility of the Chief Audit Executive (CAE)?

To effectively manage the internal audit activity Signup and view all the answers

Which reporting structure is typical for the Chief Audit Executive (CAE)?

Functionally reports to the board and administratively to senior management Signup and view all the answers

What should be considered when establishing corporate governance policies?

The size and risk profile of the listed company Signup and view all the answers

What is one of the primary purposes of the Code of Ethics in internal auditing?

To promote an ethical culture in the internal auditing profession Signup and view all the answers

What does the term 'enterprise risk management (ERM)' refer to in the context of the CAE's responsibilities?

Implementing a sound framework for managing risks Signup and view all the answers

Which of the following components is NOT included in the Code of Ethics for internal auditing?

Specific auditing methodologies Signup and view all the answers

What aspect should an effective performance management framework take into consideration?

The size of the organization and its risk profile Signup and view all the answers

Which role does the Board of Directors (BOD) serve in a company?

The highest level governing body Signup and view all the answers

What does the integrity of internal auditors establish in corporate governance?

Trust and reliability in their judgments Signup and view all the answers

Which principle requires internal auditors to refrain from being influenced by personal interests?

Objectivity Signup and view all the answers

What is the principal-agent relationship in corporate governance primarily concerned with?

The separation of ownership and management Signup and view all the answers

What does the Board Charter provide for directors in a corporation?

Clear definitions of powers and accountabilities Signup and view all the answers

Which principle emphasizes the importance of respecting the value and ownership of information in corporate governance?

Confidentiality Signup and view all the answers

In the context of corporate governance, what does competency refer to for internal auditors?

Applying necessary skills and experience Signup and view all the answers

How should the Board Charter be made available to the public?

Posted on the company’s website Signup and view all the answers

What is the primary rule of the Trust Fund Doctrine in relation to corporate governance?

Directors hold trust in managing shareholder funds Signup and view all the answers

What is a primary function of corporate governance?

To ensure proper management and stewardship of assets Signup and view all the answers

Which committee is NOT commonly found within a corporation's governance structure?

Corporate Strategy Committee Signup and view all the answers

What characteristic should directors exhibit to reinforce board independence?

Objective and independent judgment Signup and view all the answers

Which of the following actions is suggested for directors to ensure effective performance?

Devote sufficient time to understand the business Signup and view all the answers

How should board performance be assessed according to the Corporation Code?

With performance reports at each regular shareholder meeting Signup and view all the answers

What is a potential ethical threat to board independence?

Self-interest among board members Signup and view all the answers

Which of these practices supports fostering board commitment?

Attending and actively engaging in all board meetings Signup and view all the answers

What type of committee is responsible for overseeing financial reporting practices?

Audit Committee Signup and view all the answers

What is the primary purpose of governance in an organization?

To oversee activities and hold senior management accountable Signup and view all the answers

Which statement best describes corporate governance?

It involves relationships among management, board, shareholders, and stakeholders. Signup and view all the answers

What does the 'Comply or Explain' approach entail?

Companies must explain deviations from governance codes. Signup and view all the answers

What is one of the key roles of the Board of Directors (BOD)?

To approve the company's business objectives and monitor their implementation. Signup and view all the answers

Which of the following is NOT typically a responsibility of the Board of Directors?

Conduct the daily operations of the company. Signup and view all the answers

According to corporate governance principles, what is expected from the remuneration of key officers and directors?

It should be aligned with the long-term interests of the organization. Signup and view all the answers

What is the purpose of a succession planning program in corporate governance?

To prepare for future leadership transitions effectively. Signup and view all the answers

What does the 'Principle of Proportionality' refer to in corporate governance?

The alignment of governance practices with the company's size and complexity. Signup and view all the answers

Untitled Quiz

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Questions and Answers

What is the main purpose of a Code of Business Conduct and Ethics for corporate boards?

What does Ethics Intelligence enable internal auditors to do?

When faced with an ethical dilemma, what is an appropriate course of action?

Why is it important for directors to apply high ethical standards?

How must corporations vested with public interest report their directors' performance?

What is the primary responsibility of the Chief Audit Executive (CAE)?

Which reporting structure is typical for the Chief Audit Executive (CAE)?

What should be considered when establishing corporate governance policies?

What is one of the primary purposes of the Code of Ethics in internal auditing?

What does the term 'enterprise risk management (ERM)' refer to in the context of the CAE's responsibilities?

Which of the following components is NOT included in the Code of Ethics for internal auditing?

What aspect should an effective performance management framework take into consideration?

Which role does the Board of Directors (BOD) serve in a company?

What does the integrity of internal auditors establish in corporate governance?

Which principle requires internal auditors to refrain from being influenced by personal interests?

What is the principal-agent relationship in corporate governance primarily concerned with?

What does the Board Charter provide for directors in a corporation?

Which principle emphasizes the importance of respecting the value and ownership of information in corporate governance?

In the context of corporate governance, what does competency refer to for internal auditors?

How should the Board Charter be made available to the public?

What is the primary rule of the Trust Fund Doctrine in relation to corporate governance?

What is a primary function of corporate governance?

Which committee is NOT commonly found within a corporation's governance structure?

What characteristic should directors exhibit to reinforce board independence?

Which of the following actions is suggested for directors to ensure effective performance?

How should board performance be assessed according to the Corporation Code?

What is a potential ethical threat to board independence?

Which of these practices supports fostering board commitment?

What type of committee is responsible for overseeing financial reporting practices?

What is the primary purpose of governance in an organization?

Which statement best describes corporate governance?

What does the 'Comply or Explain' approach entail?

What is one of the key roles of the Board of Directors (BOD)?

Which of the following is NOT typically a responsibility of the Board of Directors?

According to corporate governance principles, what is expected from the remuneration of key officers and directors?

What is the purpose of a succession planning program in corporate governance?

What does the 'Principle of Proportionality' refer to in corporate governance?

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