AA - Corporate Governance

Which statement regarding the composition of an audit committee in accordance with the UK Corporate Governance Code is correct?

• 1. All directors must be executive

• 1. All directors must be non-executive

• 1. Some directors may be executive as long as three are non-executive

• 1. All non-executives must have recent and relevant financial experience

Which of the following is NOT a principle of corporate governance?

• 1. Rights of shareholders

• 1. Board responsibilities

• 1. Auditor’s accountability and remuneration

• 1. Risk management and internal control

Which of the following is NOT a provision of the UK Corporate Governance Code?

• 1. There should be a clear division of responsibilities between the leadership of the board and the leadership of the company’s business

• 1. All members of the board, excluding the chairman, should be independent non-executive directors

• 1. Executive director remuneration should be linked to corporate and individual performance

• 1. All directors should be subject to annual re-election

Who do audit committees normally liaise between?

• 1. The internal and external auditors

• 1. The internal auditor and the entities staff

• 1. Executive and non-executive directors

• 1. The auditors and the directors

Who has ultimate responsibility for a company’s risk management and system of internal control?

• 1. The board of directors

• 1. Management

• 1. The audit committee

• 1. A risk management committee