Over the last seven weeks we have talked about the Corporate governance triumvirate. This triumvirate includes: a) Management, the Audit Committee (or Board of Directors) and the Independent Auditor b) The CFO, the CEO and the Audit Committee Chairman c) The Board of Directors, the Audit Committee and the Independent Auditor d) Management, the Independent Auditor and outside Legal Counsel

Over the last seven weeks we have talked about the Corporate governance triumvirate. This triumvirate includes: a) Management, the Audit Committee (or Board of Directors) and the Independent Auditor b) The CFO, the CEO and the Audit Committee Chairman c) The Board of Directors, the Audit Committee and the Independent Auditor d) Management, the Independent Auditor and outside Legal Counsel

Contemporary Auditing

11th Edition

ISBN:9781337650380

Author:KNAPP

Publisher:KNAPP

Chapter1: Comprehensive Cases

Section1.6: Le-nature’s Inc.

Problem 2Q

See similar textbooks

Similar questions

26. 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
You are an audit supervisor assigned to a new client which is listed on a Stock Exchange. You visited the corporate headquarters to become acquainted with key personnel and to conduct a preliminary review of the company’s accounting policies, controls, and systems. During this visit, (a) You met with the audit committee, which consists of the corporate controller, treasurer, financial vice president, and budget director. Identify the problems and explain them in relation to the internal environment.
You are an audit supervisor assigned to a new client which is listed on a Stock Exchange. You visited the corporate headquarters to become acquainted with key personnel and to conduct a preliminary review of the company’s accounting policies, controls, and systems. During this visit, (d) You noted that all management authority seems to reside with three brothers, who serve as chief executive officer, president, and financial vice president. Identify the problems and explain them in relation to the internal environment.
You are an audit supervisor assigned to a new client which is listed on a Stock Exchange. You visited the corporate headquarters to become acquainted with key personnel and to conduct a preliminary review of the company’s accounting policies, controls, and systems. During this visit, (c) You learned that the financial vice president manages a staff of five internal auditors. Identify the problems and explain them in relation to the internal environment.
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.
Based on Pak Elektron Ltd.'s (PEL) annual report of 2017 explain in your own words the following questions:a) What are the roles of the Audit and HRM Committees ?b) Read through PEL'S Corporate Strategy, Business ethics and Practicesc) Management objectivesd) Stakeholders’ Engagemente) Code of Corporate Governance
Below is a summary of the SEC corporate governance requirements of companies publicly-listed in the stock exchange. For each requirement, state how it is intended to help to address the risk of fraud in publicly traded organizations. a. The corporate governance committee must have a written charter that addresses the committee's purpose and responsibilities, and there must be annual performance evaluation of the committee. b. Boards must have an audit committee with a minimum of three independent members. c. 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.
The last decade has seen increased attention paid to internal audit as an integral component of corporate governance mechanisms, which are designed to strengthen risk management systems of organizations and enhance financial reporting quality. Internal audit serves as a crucial resource in corporate governance by providing services to boards of directors, management and external auditors. Internal audit has also transformed from a predominantly appraisal function to a consulting paradigm over the last several decades. REQUIRED: Evaluate the steps audit committee can take to facilitate proper oversight and direction of Internal Audit.
The key independent membership with the experience, skills, commitment and understanding focus of the Audit Committee (AC) in the Corporate Governance framework is "to assist the Board in the management of business risks and internal controls". ACs will help to enhance standards of corporate governance only if they include truly of the business. Briefly describe the essential attributes for an effective Audit Committee.
The objective of a system of corporate governance is to secure the effective, sound and efficient operationof companies. This objective transcends any legislation or voluntary code. Good corporate governanceembraces not only making the company prosper but also doing business in a legal and ethical manner. Akey element of corporate governance is the audit committee. The audit committee is a committee of theboard of directors and is of a voluntary nature regulated by voluntary codes. Required:(a) Explain how an audit committee could improve the effectiveness of the external auditor's work. (b) Discuss the problems of ensuring the 'independence' of the members of the audit committee. (c) Discuss the view that the role of the audit committee should not be left to voluntary codes ofpractice but should be regulated by statute.
Answer the following case. (1) Identify and explain the corporate governance issues in each case. Support your answer with appropriate theory(s) if any. (2) Give recommendations and justify them to the board of directors. A. XYZ is a limited company operating in the steel industry. Its board of directors consist of nine independent directors, labor union representative director and nominee directors to represent major shareholders and lenders. The board is controlled by dominant directors. Mr. Smith is the independent chair of the board. Mr. John is one of the nominee directors and the husband of the CFO of XYZ. During 2020, the company started to face some financial problems. The board members were not informed with the situation. Mr. John came to know about these problems and advised his major shareholder to sell his shares.
Corporate governance explains the functions that are required to be performed by the board of directors. One of these functions are to review the performance of internal auditors. There is always a chance of threat if a person stays on a position for a long time. So, it is recommended that __________. a. None of the options b. Existing auditors must be retained c. Make a job rotation from one department to other d. Try to bring new auditors after an interval