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WorksheetsRM&CG_W7_Audit & Remuneration Committees
Total questions: 10
Worksheet time: 5mins
What is the primary role of the audit committee?
Setting executive remuneration
Monitoring the integrity of financial statements
Developing corporate strategy
Managing day-to-day company operations
How many independent non-executive directors should an audit committee have in a large company?
At least one
At least two
At least three
At least four
DEF Ltd. is appointing a new member to its audit committee. Which candidate is most suitable?
A senior executive with no financial background
A non-executive director with recent and relevant financial experience
A long-term employee from the HR department
The CEO of the company
ABC Ltd. has an audit committee with three independent non-executive directors. The board wants to include the chair of the board in the committee to provide more oversight. Is this appropriate?
Yes, because the chair of the board has the most experience
No, because the chair of the board should not be a member of the audit committee
Yes, but only if the company is small
No, because the chair of the board is responsible for executive management
Which of the following firms is NOT part of the Big Four audit firms?
Deloitte
KPMG
Goldman Sachs
Ernst & Young (EY)
The external audit process includes:
Setting executive bonuses
Understanding internal controls and risk assessment
Developing marketing strategies
Managing employee relations
What is the role of the remuneration committee?
Setting financial regulations
Determining executive director remuneration
Conducting internal audits
Managing risk assessments
Who should be members of the remuneration committee?
Executive directors
Independent non-executive directors
Shareholders
External auditors
Which of the following should NOT be included in non-executive directors' remuneration?
Base salary
Share options
Fixed allowances
Board meeting fees
What should executive directors’ remuneration schemes promote?
Short-term stock price increases
Long-term shareholdings aligned with shareholder interests
High-risk investment strategies
Unlimited bonus payments
