QUIZ 1 - GOVERNANCE
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Questions and Answers

The basic principle of "accountability" for effective governance answers the following questions positively, except

  • Does the composition mix of board membership ensure an appropriate range and risk of expertise diversity, knowledge added value?
  • Does the board promote objective, ethical and responsible decision making?
  • Does the board recognized and manage risk? (correct)
  • Does the board lay solid foundations for management oversight?
  • Approving annual financial reports and other documents are specific responsibilities of

  • Management
  • Shareholders (correct)
  • Board of directors
  • Employees
  • Who is responsible for ensuring the accuracy, timeliness of public reporting of financial and other information for public companies?

  • External auditors
  • Securities and exchange commission
  • Shareholders (correct)
  • Board of Accountancy
  • 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

    <p>Audit committee of the board of directors</p> Signup and view all the answers

    "Transparency and full disclosure" principle advocates the following except

    <p>Solid foundations for management</p> Signup and view all the answers

    The basic principle of "transparency and full disclosure" for effective corporate governance responds positively to the following questions except.

    <p>Has the board built long-term sustainable growth in shareholders' value for the corporation</p> Signup and view all the answers

    An independent director is expected director is expected to

    <p>Apply expertise and skills in the corporations best interest</p> Signup and view all the answers

    To safeguard integrity in financial reporting. The business firm should do the following except

    <p>Disclose the policy concerning trading in company securities by directors, officers and employees.</p> Signup and view all the answers

    Who performs audit of companies for compliance with company policies and laws, audits efficiency of operations and periodic evaluation and tests of control?

    <p>Internal auditors</p> Signup and view all the answers

    To encourage enhanced performance by the board and management, it is recommended that the following should be adopted except

    <p>Disclosure of the process for performance evaluation of the board, its committees, individual directors and by executives.</p> Signup and view all the answers

    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.

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    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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