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WorksheetsInternal Audit | Corporate Governance
Total questions: 12
Worksheet time: 6mins
Who runs the company operations for large companies?
Shareholders
Board of Directors
External auditors
Creditors
Which is NOT the role of audit committee?
Review the work of internal audit
Review the system of internal control.
Perform periodic financial statement audit.
May launch special investigations
Key player(s) in good corporate governance is/are:
Directors and management of corporation
Audit committee members
Internal and External auditors
Shareholders
All options are correct.
To whom does the shareholders delegate responsibilities in running the business as a whole?
Management
Employees
Board of Directors
Accountants
They provide oversight of the internal and external audit function and the process of preparing the annual financial statements:
Audit Committee
Management
Accountants
Board of Accountancy
In order to have good governance in an organization, this major characteristic must be present:
Connections
Wealth
Accountability
Good Looks
What is the advantage of having an audit committee in a company? Select the best option.
Good audit committee ensures corporate failure and economic growth.
Strengthening the dependence of the internal audit function.
Ensures organization is managed in a manner that fits the best interests of the management and BOD.
Better monitoring of compliance with standards, laws and regulations.
The audit committee members' composition must comprise at least three company directors (member of the board) who are not :
involved in the daily management of the company.
full-time employees of the company for the past three financial years.
material suppliers or customers (business relationship).
All options are correct.
There are main pillars of corporate governance, except :
Accountability
Fairness
Control environment
Transparency
Corporate governance is a process by which the owners, but not the creditors, exert control over the resources of the enterprise.
True
False
A company with good corporate governance has a lower cost of capital and superior stock returns as compared to other companies.
True
False
Financial Failures such as Enron, WorldCom are result of:
failure in the corporate governance structure.
faults in the Public Accounting Profession.
greed-infected professionals and management.
All options are correct.
