Corporate Governance Flashcards
What do the NASDAQ & NYSE require of the board of the directors
Independence
What is the duty of the audit committee
appoints and oversees external auditor
What is the duty of the corporate governance committee
oversee the board of directors and hire CEO
Shirking
When management doesnt act in the best interest of the shareholders
How do you solve shirking?
tie management compensation to stock performance or company profit
Who submits the report on effectiveness of internal control in the 10K
Management
Who must disclose internal control deficiencies
Management
What does the COSO Framework promote?
Compliance, reliability of FS, effective and efficient operations
COSO Framework components
Control Environment, Risk Assessment, control activities, information and communication and monitoring
Which part of the COSO Framework does Accountability apply to?
Control environment
Which part of the COSO Framework does Establishing structure and authority apply to?
control environment
Which part of the COSO Framework does commitment to competence apply to?
control environment
Which part of the COSO Framework does specifying suitable objectives apply to?
risk assessment
Which part of the COSO Framework does assess fraud risk apply to?
risk assessment
Which part of the COSO Framework doesidentify and analyze change apply to?
risk assessment
Which part of the COSO Framework does develop IT controls apply to?
control activities
Which part of the COSO Framework does policies and procedures apply to?
control activities
Which part of the COSO Framework does relevant information apply to?
information and technology
Which part of the COSO Framework does external communications apply to?
information and technology
Which part of the COSO Framework does communicate deficiencies apply to?
monitoring
ERM Framework components
Governance and culture, strategy & objective-setting, performance, review & revision, information communication & reporting
What part of the ERM framework does attract/develop/retain team members apply to?
Governance and culture
What part of the ERM framework does core values apply to?
Governance and culture
What part of the ERM framework does business context apply to?
strategy and objective setting
