Corporate Governance

Question 1

Risk Assessment

Answer 1

Process of identifying, analyzing, and managing risks

Question 2

Control Environment

Answer 2

The Foundation of any system of internal control.
Includes:
- organizational structure
- mgmts philosophy towards controls
- system of authority and responsibility
-personnel practices
-policies and procedures

Question 3

Monitoring

Answer 3

Ensures ongoing reliability of info and control processes by monitoring and testing the control system

Question 4

Control activities

Answer 4

the policies and procedures that ensure that actions are taken to address the risks related to the achievement of mgmts objectives.
The routine controls over business processes/transactions

Question 5

Info and communications

Answer 5

Enables an org’s personnel to identify, process, and exchange the info needed to manage and control operations.

Question 6

what are types of controls under control activities

Answer 6

verification
physical controls
supervisory controls

Question 7

Risk Appetite

Answer 7

the amount of risk exposure that an org chooses to accept or retain, as opposed to sharing, avoiding, reducing or eliminating the risk

Question 8

Enterprise Risk Mgmt

Answer 8

the methods and processes used by orgs to identify and manage the events and circumstances that influence the orgs ability to achieve its objectives

Question 9

what four activities should be segregated

Answer 9

Authorizing
Safeguarding
Recording
Reconciling, oversight, and auditing

Question 10

What are 3 things the CFO and CEO must certify

Answer 10

• that they’ve reviewed the 10K and 10Qs
• the reports do not contain any material falsehoods or half-truths
• the financial info is fairly presented.

Question 11

when are the CEO and CFOs bonuses clawed back?

Answer 11

when FSs are materially restated, even if the error is unintentional