Cchapter 4 : The committees

Question 1

what is the most common committees ?

Answer 1

Audit, nomination and remuneration

Question 2

True or False : Committees report to the board periodically on their activities, proposals and
agreements reached

Answer 2

TRUE

Question 3

TRUE or FALSE : There should always be independent directors on the committees ?

Answer 3

TRUE

Question 4

Committee membership criteria may include :

Answer 4

• experience
• expertise
• time commitments
• independence from management
• typically 3/4 members

Question 5

What the Audit committee do ?

Answer 5

overseeing the
accounting and financial reporting processes of the issuer and audits of the financial
statements of the issuer”

Question 6

composition of the Audit committee ?

Answer 6

• independent directors
• financially literate
• One of the members must qualify as a financial expert

Question 7

what is internal Audit ?

Answer 7

Internal audit is a regular, continuous activity that is performed by an internal audit department of an organization

Internal Audit is not complusory

Question 8

What is External Audit ?

Answer 8

External audit is a yearly activity to investigate the organization’s financial statement by a third party.

External Audit is compulsory

Question 9

True or False : Committees should be formed exclusively by non-executive directors, with a
majority of independents ?

Answer 9

TRUE