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WorksheetsAudit & Assurance Services-T3
Total questions: 12
Worksheet time: 19mins
The framework for establishing good corporate governance and accountability was originally set up by the
Nestle Committee
Rowntree Committee
Cadbury Committee
Thornton Committee
Which of the following is not one the underlying principles of the corporate governance Combined Code of Practice?
integrity
acceptability
accountability
openness
External audit of the accounts of a listed company is required
at the discretion of the shareholders
because it is demanded by the company’s bankers
by the Companies Act 2016
to detect fraud
Directors’ responsibilities are unlikely to include
a duty of care
a duty to keep proper accounting records
a fiduciary duty
a duty to propose high dividends for shareholders
A company may become insolvent if it
makes a loss
has negative working capital
cannot pay creditors in full after realisation of its assets
cannot meet its budgeted level of profit
A director of a limited company may not be liable for wrongful trading if he or she
introduced into the balance sheet an asset based on a valuation of its brands sufficient to meet any shortfall
brought in some expected sales from next year into the current year.
increased the valuation of its inventories to cover any potential shortfall
took every step to minimise the potential loss to creditors
Fraudulent trading may be
a criminal offence committed only by directors of a limited company
a civil and a criminal offence committed only by directors of a limited company
a civil and a criminal offence committed by any employee
a civil offence committed by any employee
Why did corporate governance become an issue in the corporate arena?
Who are the key players in the issue of enhancing corporate governance?
Explain the role of the auditor with respect to corporate governance.
How did the government play a role in enhancing corporate governance?
How did the accounting profession respond with respect to corporate governance?
