As per the corporate governance code, an audit committee should be set up and it should be comprised of minimum 3 nonexecutive directors. You are required to choose from the following the role of an audit committee. a. Decide the Directors remuneration b. Approve remuneration and terms of engagement of the external auditor c. Appoint all the Directors in a board d. Appoint the CEO of the company

As per the corporate governance code, an audit committee should be set up and it should be comprised of minimum 3 nonexecutive directors. You are required to choose from the following the role of an audit committee. a. Decide the Directors remuneration b. Approve remuneration and terms of engagement of the external auditor c. Appoint all the Directors in a board d. Appoint the CEO of the company

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter2: The Auditor’s Responsibilities Regarding Fraud And Mechanisms To Address Fraud: Regulation And Corporate Governance

Section: Chapter Questions

Problem 23CYBK

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4. As per the guidelines of corporate governance code, an audit committee should be set up and it should be comprised of minimum 3 nonexecutive directors. You are required to identify from the following any one drawback an audit committee? a. Broader skills within the board b. More trust in the credibility of the audit report c. Better position for the entity if looking to obtain a listing d. Difficult to find Audit Committee members with the relevant qualification, skill and experience
For each requirement, state how it is intended to help to address the risk of fraud in publicly traded organizations. a. Boards must have a corporate governance committee composed at least 3 of independent directors. b. The corporate governance committee must have a written charter that addresses the committee's purpose and responsibilities, and there are must be annual performance evaluation of the committee.
10-In Al Anwar Ceramic Tiles Co. SAOG ,the Board has established an Audit Committee comprising of three members out of them one being an independent member. The Company’s Internal Rules on Corporate Governance gives a lists of roles and responsibilities of the Audit Committee members. Which of the following are not the role of Audit Committee as per the International Code of Corporate Governance. a-Monitor the integrity of the company’s financial statements b-Approve remuneration and terms of engagement of the external auditor c-Make recommendations in relation to appointment, reappointment and removal of external auditor d-Design, operate and monitor a suitable system of internal control
Which of the following is NOT a requirement of the Cadbury Code of Best Practice for board of directors of firms? Meeting regularly. Conducting monthly financial audits. Monitoring executive management. Retaining full and effective control over the company.
Look at the following descriptions of how management, the auditor and the audit committee (or board of directors) interact with one another. Choose the one that best describes the interactions. a) Management works closely with the Board of Directors. Included amongst Management's duties is the hiring of Independent Auditors b)The Board of Directors is all knowing and all seeing. They employ Management as their Agent to run the company. Their monthly Board meetings suffice to satisfy them that Management is performing in the Shareholders' interest. c) Agency theory explains many things including why Management hires Independent Auditors to audit the financial statements d) Shareholders select a Board of Directors to oversee the Shareholders' business. The Board of Directors hire Management to run the day to day operations of the business. The Board of Directors hire Agents to assist it in monitoring Management. Amongst these Agents is the independent auditor.
Which of the following factors would weaken corporate governance? A.Ensuring that the rotation of directors is such that the average incumbency ensures that all diretors are appointed for a long period so as to enhance their familiarity with the company's policies and procedures B.Stipulating the maximum number of directorship a director can commit to C.Ensuring the CEO is not the chairman of the board of directors D.The appointment of independent directors to the audit committee
For each requirement, state how it is intended to help to address the risk of fraud in publicly traded organizations. a. Boards must have an audit committee with a minimum of three independent directors. b. The audit committee must have a written charter that addresses the committee's purpose and responsibilities, and the committee must produce an audit committee report; there must also be an annual performance evaluation of the committee.
Please answer all 3 subparts Question 1 (i) Which of the following statement is correct concerning two-tier boards?A. The management board consists entirely of non-executive directors.B. The supervisory board has the responsibility for risk management and for thepreparation of the annual financial statement.C. The management board is led by the Chairman who is the CEO of the company.D. The supervisory board is responsible for managing the company. (ii) Who are key players, according to the firm definition of corporate governance:A. ManagementB. ShareholdersC. All stakeholdersD. The independent board (iii) Which of the following is not a statutory duty of a director?A. Duty to disclose any money received in connection of a transfer of company property.B. Duty to exercise due diligence in their work.C. Duty to contribute an appropriate sum of money to the board on joining the company.D. Duty to keep proper accounting records and make such records available for inspection.
In Al Anwar Ceramic Tiles Co. SAOG ,the Board has established an Audit Committee comprising of three members out of them one being an independent member. The Company’s Internal Rules on Corporate Governance gives a lists of roles and responsibilities of the Audit Committee members. Which of the following are not the role of Audit Committee as per the International Code of Corporate Governance. Monitor the integrity of the company’s financial statements Approve remuneration and terms of engagement of the external auditor Design, operate and monitor a suitable system of internal control Make recommendations in relation to appointment, reappointment and removal of external auditor
The independence of the internal audit department will most likely be assured if itreports to the(1) president. (4) audit committee of the board of directors.(2) controller. (5) vice president of finance.(3) treasurer.
Which of the following statements is correct? A.The external auditor is responsible for the preperation of a company's financial statements. B.Audit commitees are now compulsory for the top 500 companies C.An audit commitee may be responsible for reviewing policies on internal control procedures D.Corporate governance can provide assurances that management is accountable for the actions
15- Who makes recommendations in relation to appointment, reappointment and removal of external auditor? Shareholders Management Audit Committee Board of Directors