Corporate Governance

Question 1

What do the NASDAQ & NYSE require of the board of the directors

Answer 1

Independence

Question 2

What is the duty of the audit committee

Answer 2

appoints and oversees external auditor

Question 3

What is the duty of the corporate governance committee

Answer 3

oversee the board of directors and hire CEO

Question 4

Shirking

Answer 4

When management doesnt act in the best interest of the shareholders

Question 5

How do you solve shirking?

Answer 5

tie management compensation to stock performance or company profit

Question 6

Who submits the report on effectiveness of internal control in the 10K

Answer 6

Management

Question 7

Who must disclose internal control deficiencies

Answer 7

Management

Question 8

What does the COSO Framework promote?

Answer 8

Compliance, reliability of FS, effective and efficient operations

Question 9

COSO Framework components

Answer 9

Control Environment, Risk Assessment, control activities, information and communication and monitoring

Question 10

Which part of the COSO Framework does Accountability apply to?

Answer 10

Control environment

Question 11

Which part of the COSO Framework does Establishing structure and authority apply to?

Answer 11

control environment

Question 12

Which part of the COSO Framework does commitment to competence apply to?

Answer 12

control environment

Question 13

Which part of the COSO Framework does specifying suitable objectives apply to?

Answer 13

risk assessment

Question 14

Which part of the COSO Framework does assess fraud risk apply to?

Answer 14

risk assessment

Question 15

Which part of the COSO Framework doesidentify and analyze change apply to?

Answer 15

risk assessment

Question 16

Which part of the COSO Framework does develop IT controls apply to?

Answer 16

control activities

Question 17

Which part of the COSO Framework does policies and procedures apply to?

Answer 17

control activities

Question 18

Which part of the COSO Framework does relevant information apply to?

Answer 18

information and technology

Question 19

Which part of the COSO Framework does external communications apply to?

Answer 19

information and technology

Question 20

Which part of the COSO Framework does communicate deficiencies apply to?

Answer 20

monitoring

Question 21

ERM Framework components

Answer 21

Governance and culture, strategy & objective-setting, performance, review & revision, information communication & reporting

Question 22

What part of the ERM framework does attract/develop/retain team members apply to?

Answer 22

Governance and culture

Question 23

What part of the ERM framework does core values apply to?

Answer 23

Governance and culture

Question 24

What part of the ERM framework does business context apply to?

Answer 24

strategy and objective setting

Question 25

What part of the ERM framework does risk appetite apply to?

Answer 25

strategy and objective setting

Question 26

What part of the ERM framework does alternative strategies apply to?

Answer 26

strategy and objective setting

Question 27

What part of the ERM framework does identify risks apply to?

Answer 27

performance

Question 28

What part of the ERM framework does risk responses apply to?

Answer 28

performance

Question 29

What part of the ERM framework does portfolio view apply to?

Answer 29

performance

Question 30

What part of the ERM framework does prioritizing risks apply to?

Answer 30

performance

Question 31

What part of the ERM framework does substantial change assessment apply to?

Answer 31

review & revision

Question 32

What part of the ERM framework does risk performance review apply to?

Answer 32

review & revision

Question 33

What part of the ERM framework does ERM improvement apply to?

Answer 33

review & revision

Question 34

What part of the ERM framework does risk communication apply to?

Answer 34

review & revision

Question 35

What part of the ERM framework does risk, culture and performance reports apply to?

Answer 35

review & revision