10 Questions
The basic principle of "accountability" for effective governance answers the following questions positively, except
Does the board recognized and manage risk?
Approving annual financial reports and other documents are specific responsibilities of
Shareholders
Who is responsible for ensuring the accuracy, timeliness of public reporting of financial and other information for public companies?
Shareholders
Providing oversight of the internal and external audit function, the process of preparing the annual financial statements and public reports on internal control are responsibility of
Audit committee of the board of directors
"Transparency and full disclosure" principle advocates the following except
Solid foundations for management
The basic principle of "transparency and full disclosure" for effective corporate governance responds positively to the following questions except.
Has the board built long-term sustainable growth in shareholders' value for the corporation
An independent director is expected director is expected to
Apply expertise and skills in the corporations best interest
To safeguard integrity in financial reporting. The business firm should do the following except
Disclose the policy concerning trading in company securities by directors, officers and employees.
Who performs audit of companies for compliance with company policies and laws, audits efficiency of operations and periodic evaluation and tests of control?
Internal auditors
To encourage enhanced performance by the board and management, it is recommended that the following should be adopted except
Disclosure of the process for performance evaluation of the board, its committees, individual directors and by executives.
Study Notes
Accountability in Corporate Governance
- Effective governance involves accountability, answering questions positively, except for approving annual financial reports and other documents.
- Specific responsibilities for approving annual financial reports and documents rest with the Board of Directors.
Oversight and Audit Functions
- Ensuring accuracy and timeliness of public financial reporting and other information for public companies is the responsibility of the Audit Committee.
- Oversight of internal and external audit functions, annual financial statement preparation, and public reports on internal control fall under the Audit Committee's purview.
Transparency and Full Disclosure
- The principle of transparency and full disclosure responds positively to all questions except for one.
- Transparency and full disclosure advocate for open communication of all relevant information, except for one aspect.
Independent Directors and Financial Reporting
- Independent directors are expected to safeguard the integrity of financial reporting in their organizations.
Internal Audit Functions
- Internal Auditors perform audits to ensure compliance with company policies and laws, evaluate operational efficiency, and conduct periodic control tests.
Enhancing Board and Management Performance
- To encourage enhanced performance, it is recommended to adopt certain practices, except for one specific approach.
Test your knowledge on the basic principle of 'accountability' in effective governance by identifying which questions are not answered positively. See how well you understand this important concept.
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