BEC 2: Corporate Governance Flashcards
What are the main roles of Internal Audit Staff
-Reporting to the board of directors (audit committee)
What are the main roles of Internal Audit Staff
- Reporting to the board of directors (audit committee)
- Provides assurance that risks are evaluated appropriately
- Evaluates the risk management process
- Coordinates ERM activities
What is the Revised Model Business Corporation Act
A recommendation of dissolution by the board of directors and approval by a majority of all shareholders entitled to vote.
What are the components of an effective fraud risk management program?
- A tip hotline
- A management review
- Internal auditors
What is the Revised Model Business Corporation Act
A recommendation of dissolution by the board of directors and approval by a majority of all shareholders entitled to vote.
What are the roles of the Board of Directors
- Setting broad limits for management to operate within
- Setting risk appetite for the organization
- Provide oversight of an entity’s Enterprise Risk Management
What are actions of an effective fraud risk management program
- Initiates a visible and rigorous fraud governance process
- Entails a thorough periodic fraud risk assessment
- Responds quickly to fraud allegations
What are actions of an effective fraud risk management program
- Initiates a visible and rigorous fraud governance process
- Entails a thorough periodic fraud risk assessment
- Responds quickly to fraud allegations
What are duties of the audit committee?
- Considers reputation risk when reviewing work of management, internal auditors, and external auditors
- Monitors fraud risks throughout the entity
- Remains cognizant of the external auditor’s responsibilities pertaining to fraud
What is included in
Strategic - What are the long term goals and mission
Compliance - Compliance with applicable laws and regulations
Reporting - Reliability of Reporting
Operations - Effective and efficient Resources
What choices are available to firms participating in financial markets related to risks
- Accept the risk
- Transfer the risk
- Manage the risk
What is integrated planning
A way for stake holders to communicate with the affected departments of an organization
Section 404 of Sarbanes-Oxley Act
If you issue financial reports, you need to include internal controls that are SEC standard. Also, you need to state your capabilities and limits.
