Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

BEC CPA Exam > Corporate Gov > Flashcards

Corporate Gov Flashcards

1
Q

What is the primary duty of the board of directors?

A

To monitor management behavior.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is the responsibility of the Nominating or Corporate Governance Committee of the board of directors?

A

Oversees the board

Responsible for hiring new CEO

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is the responsibility of the audit committee of the board of directors?

A

The audit committee appoints and oversees the external auditor.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is the duty of the compensation committee of the board of directors?

A

The compensation committee handles the CEO’s compensation package.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What does the NYSE and NASDAQ require of the board of directors?

A

They require the board to be independent.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is the main goal in an executive compensation package?

A

The package should ensure that the goals of management should match those of the shareholders.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

How can an executive compensation package ensure that goals of management align with those of shareholders?

A

Executive compensation should create an incentive for management to govern in a shareholder-friendly way that doesn’t sacrifice the long-term success of the enterprise for short-term gain.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Which influences help mold the direction that management takes?

A

They range from internal (Board of Directors- Audit Committee- Internal Control) to external (Creditors- SEC- IRS)

These influences should not be tainted by undue influence from management or have financial ties to management such as compensation-related duties

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is shirking?

A

When management doesn’t act in the best interest of shareholders.

It can be alleviated by tying compensation to stock performance or company profit.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What requirements are imposed on a public company under Sarbanes-Oxley?

A

Management must submit a report on the effectiveness of Internal Control in the 10K.

Management must disclose significant Internal Control deficiencies.

CEO/CFO must certify that the financial statements comply with securities laws and fairly present the financial condition of the company.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What characteristics are promoted by the COSO framework on Internal Control?

A

Reliable financial reporting

Effective and efficient operations

Compliance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What are the elements of the control environment?

A 
Integrity & Ethics
Competence
The Board of Directors & Audit Committee
Management's Operating Style
Organizational Structure
Authority & Roles of Responsibilities
HR Policies
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What are control activities?

A

A component of Internal Control that includes actions being taken to promote the control environment.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What are the basic elements of Internal Control?

A 
Control Environment
Risk Assessment
Control Activities
Information and Communication
Monitoring
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is the significance of the Information and Communication aspect of Internal Control?

A

Management must have access to relevant and timely information to make good decisions.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

How does Monitoring affect Internal Control?

A

Internal Control activities must be constantly monitored and evaluated for effectiveness.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What activities does the COSO framework for enterprise risk management include?

A 
Identifies Risk Factors
Promotes Risk Response Decisions
Compares Management Risk vs. Shareholder Goals
Aids in evaluating opportunities
Promotes Quicker Capital movement

Does NOT eliminate all risk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What are possible responses to risk under the COSO framework for enterprise risk management?

A

Avoid or Reduce

Share or Accept

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What is the responsibility of the Nominating or Corporate Governance Committee of the board of directors?

A

Oversees the board

Responsible for hiring new CEO

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What is the responsibility of the audit committee of the board of directors?

A

The audit committee appoints and oversees the external auditor.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What is the duty of the compensation committee of the board of directors?

A

The compensation committee handles the CEO’s compensation package.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What does the NYSE and NASDAQ require of the board of directors?

A

They require the board to be independent.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What is the main goal in an executive compensation package?

A

The package should ensure that the goals of management should match those of the shareholders.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

How can an executive compensation package ensure that goals of management align with those of shareholders?

A

Executive compensation should create an incentive for management to govern in a shareholder-friendly way that doesn’t sacrifice the long-term success of the enterprise for short-term gain.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Which influences help mold the direction that management takes?
They range from internal (Board of Directors- Audit Committee- Internal Control) to external (Creditors- SEC- IRS) These influences should not be tainted by undue influence from management or have financial ties to management such as compensation-related duties
26
What is shirking?
When management doesn't act in the best interest of shareholders. It can be alleviated by tying compensation to stock performance or company profit.
27
What requirements are imposed on a public company under Sarbanes-Oxley?
Management must submit a report on the effectiveness of Internal Control in the 10K. Management must disclose significant Internal Control deficiencies. CEO/CFO must certify that the financial statements comply with securities laws and fairly present the financial condition of the company.
28
What characteristics are promoted by the COSO framework on Internal Control?
Reliable financial reporting Effective and efficient operations Compliance
29
What are the elements of the control environment?
``` Integrity & Ethics Competence The Board of Directors & Audit Committee Management's Operating Style Organizational Structure Authority & Roles of Responsibilities HR Policies ```
30
What are control activities?
A component of Internal Control that includes actions being taken to promote the control environment.
31
What are the basic elements of Internal Control?
``` Control Environment Risk Assessment Control Activities Information and Communication Monitoring ```
32
What is the significance of the Information and Communication aspect of Internal Control?
Management must have access to relevant and timely information to make good decisions.
33
How does Monitoring affect Internal Control?
Internal Control activities must be constantly monitored and evaluated for effectiveness.
34
What activities does the COSO framework for enterprise risk management include?
``` Identifies Risk Factors Promotes Risk Response Decisions Compares Management Risk vs. Shareholder Goals Aids in evaluating opportunities Promotes Quicker Capital movement ``` Does NOT eliminate all risk
35
What are possible responses to risk under the COSO framework for enterprise risk management?
Avoid or Reduce Share or Accept
36
What is the primary duty of the board of directors?
To monitor management behavior.
37
What is the responsibility of the Nominating or Corporate Governance Committee of the board of directors?
Oversees the board Responsible for hiring new CEO
38
What is the responsibility of the audit committee of the board of directors?
The audit committee appoints and oversees the external auditor.
39
What is the duty of the compensation committee of the board of directors?
The compensation committee handles the CEO's compensation package.
40
What does the NYSE and NASDAQ require of the board of directors?
They require the board to be independent.
41
What is the main goal in an executive compensation package?
The package should ensure that the goals of management should match those of the shareholders.
42
How can an executive compensation package ensure that goals of management align with those of shareholders?
Executive compensation should create an incentive for management to govern in a shareholder-friendly way that doesn't sacrifice the long-term success of the enterprise for short-term gain.
43
Which influences help mold the direction that management takes?
They range from internal (Board of Directors- Audit Committee- Internal Control) to external (Creditors- SEC- IRS) These influences should not be tainted by undue influence from management or have financial ties to management such as compensation-related duties
44
What is shirking?
When management doesn't act in the best interest of shareholders. It can be alleviated by tying compensation to stock performance or company profit.
45
What requirements are imposed on a public company under Sarbanes-Oxley?
Management must submit a report on the effectiveness of Internal Control in the 10K. Management must disclose significant Internal Control deficiencies. CEO/CFO must certify that the financial statements comply with securities laws and fairly present the financial condition of the company.
46
What characteristics are promoted by the COSO framework on Internal Control?
Reliable financial reporting Effective and efficient operations Compliance
47
What are the elements of the control environment?
``` Integrity & Ethics Competence The Board of Directors & Audit Committee Management's Operating Style Organizational Structure Authority & Roles of Responsibilities HR Policies ```
48
What are control activities?
A component of Internal Control that includes actions being taken to promote the control environment.
49
What are the basic elements of Internal Control?
``` Control Environment Risk Assessment Control Activities Information and Communication Monitoring ```
50
What is the significance of the Information and Communication aspect of Internal Control?
Management must have access to relevant and timely information to make good decisions.
51
How does Monitoring affect Internal Control?
Internal Control activities must be constantly monitored and evaluated for effectiveness.
52
What activities does the COSO framework for enterprise risk management include?
``` Identifies Risk Factors Promotes Risk Response Decisions Compares Management Risk vs. Shareholder Goals Aids in evaluating opportunities Promotes Quicker Capital movement ``` Does NOT eliminate all risk
53
What are possible responses to risk under the COSO framework for enterprise risk management?
Avoid or Reduce Share or Accept
54
What is the primary duty of the board of directors?
To monitor management behavior.
55
What is the responsibility of the Nominating or Corporate Governance Committee of the board of directors?
Oversees the board Responsible for hiring new CEO
56
What is the responsibility of the audit committee of the board of directors?
The audit committee appoints and oversees the external auditor.
57
What is the duty of the compensation committee of the board of directors?
The compensation committee handles the CEO's compensation package.
58
What does the NYSE and NASDAQ require of the board of directors?
They require the board to be independent.
59
What is the main goal in an executive compensation package?
The package should ensure that the goals of management should match those of the shareholders.
60
How can an executive compensation package ensure that goals of management align with those of shareholders?
Executive compensation should create an incentive for management to govern in a shareholder-friendly way that doesn't sacrifice the long-term success of the enterprise for short-term gain.
61
Which influences help mold the direction that management takes?
They range from internal (Board of Directors- Audit Committee- Internal Control) to external (Creditors- SEC- IRS) These influences should not be tainted by undue influence from management or have financial ties to management such as compensation-related duties
62
What is shirking?
When management doesn't act in the best interest of shareholders. It can be alleviated by tying compensation to stock performance or company profit.
63
What requirements are imposed on a public company under Sarbanes-Oxley?
Management must submit a report on the effectiveness of Internal Control in the 10K. Management must disclose significant Internal Control deficiencies. CEO/CFO must certify that the financial statements comply with securities laws and fairly present the financial condition of the company.
64
What characteristics are promoted by the COSO framework on Internal Control?
Reliable financial reporting Effective and efficient operations Compliance
65
What are the elements of the control environment?
``` Integrity & Ethics Competence The Board of Directors & Audit Committee Management's Operating Style Organizational Structure Authority & Roles of Responsibilities HR Policies ```
66
What are control activities?
A component of Internal Control that includes actions being taken to promote the control environment.
67
What are the basic elements of Internal Control?
``` Control Environment Risk Assessment Control Activities Information and Communication Monitoring ```
68
What is the significance of the Information and Communication aspect of Internal Control?
Management must have access to relevant and timely information to make good decisions.
69
How does Monitoring affect Internal Control?
Internal Control activities must be constantly monitored and evaluated for effectiveness.
70
What activities does the COSO framework for enterprise risk management include?
``` Identifies Risk Factors Promotes Risk Response Decisions Compares Management Risk vs. Shareholder Goals Aids in evaluating opportunities Promotes Quicker Capital movement ``` Does NOT eliminate all risk
71
What are possible responses to risk under the COSO framework for enterprise risk management?
Avoid or Reduce Share or Accept

BEC CPA Exam (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions