good governance exam PDF

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1. The following questions indicate a firm’s conformance and compliance with corporate control except Does it encourage enhanced performance? Does it recognize and manage risk? Does it promote objective, ethical and responsible decision making? Does it recognize the legitimate interests of stakehold...

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1.Thef ol l owi ngquest i onsi ndi cat eafir m’ sconf or manceandcompl i ancewi t h cor por at econt r ol except Doesi tencour ageenhancedper f or mance? Doesi tr ecogni z eandmanager i sk ? Doesi tpr omot eobj ect i ve,et hi cal andr esponsi bl edeci si onmaki ng? Doesi tr ecogni z et hel egi t i mat ei nt er est sofst ak ehol der s ? coupon 2.Ther i ght sofshar ehol der scanbeeffect i vel yuphel dt hr ought hef ol l owi ng measur esex cept Byest abl i shi nganaudi tcommi t t ee Byencour agi ngact i v epar t i ci pat i onatgener almeet i ngs. Byr equi r i ngt heex t er nalaudi t ort oat t endt heannualgener almeet i ngandt o ans werquest i onsaboutt heaudi t . Bydesi gni nganddi scl osi ngacommuni cat i onst r at egyt opr omot eaffect i v e communi cat i onwi t hshar ehol der s. 3.Whi choft hef ol l owi ngbasi cofpr i nci pl esofeffect i v ecor por at egover nancet hi s quest i on” Doesi tencour ageenhancedper f or mance? i si nt endedf or Cor por at econt r ol Sel f assessment Account abi l i t y Tr anspar encyandf ul ldi scl osur e 4.Thechar act er i st i cofgoodgov er nancewhi chr equi r est hatt hei ns t i t ut i onand pr ocessest r yt oser vet heneedsofal lst ak ehol der swi t hi nar easonabl e t i mef r ame. Account abi l i t y Responsi v eness Effect i v enessandeffic i ency Ti mel i ness 5.Requi r esmedi at i onoft hedi ffer enti nt er esti nsoci et yt or eachabr oadagr eement onwhati st hebesti nt er estoft hewhol ecommuni t y . Equi t yandi ncl usi v eness

Responsi v eness Par t i ci pat i on Consens usOr i ent ed 6.Tos af eguar di nt egr i t yi nfinanci alr epor t i ng,t hebusi nessfir ms houl ddot he f ol l owi ngex cept Di sc l oset hef unct i onsr eser vedt ot heboar dandt hosedel egat edt omanagement Requestt heex t er nalaudi t ort oat t endt heannualgener almeet i ng Di sc l oset hepol i cyconcer ni ngt r adi ngi ncompanysecur i t i esbydi r ect or s,offic er s andempl oy ees. Est abl i s hanaudi tcommi t t ee 7.Thechar act er i st i csofgoodgov er nancewher ef ai rl egalf r amewor kar eenf or ced i mpar t i al l yi s Par t i ci pat i on Equi t y Rul eofl aw Account abi l i t y 8.Thequest i on“ I st heboar ddoi ngt her i ghtt hi ng?”r ef er st o Tr anspar encyandFul lDi scl osur e Account abi l i t y Cor por at eCont r ol Noneoft hese 9.Tr anspar enc yandf ul ldi scl osur epr i nci pl eadv ocat et hef ol l owi ngex cept Sol i df oundat i onsf ormanagementov er si ght Sounddi scl osur epol i ci esandpr act i ces Saf eguar dsi nt egr i t yi nfinanci alr epor t i ng. Meet i ngt hei nf or mat i onneedsofi nv est mentcommuni t i es

10.Theaudi tcommi t t eei sst r uct ur edsot hati ti sconsi st soft hef ol l owi ngex cept Atl eastt hr ee( 3)member s Anempl oy eewi t hunquest i onabl ei nt egr i t y . Onl ynonex ecut i v eori ndependentdi r ect or s Ani ndependentchai r per s onwhoi snotchai r per sonoft heboar d 11. Themai nobj ect i v eofcor por at egov er nancei st opr ot ectt hel ongt er mi nt er estof t heshar ehol der s . Tr anspar encyandf ul ldi scl osur e I ncr easeshar ehol der s ’weal t h Sel f assessment Fai rt r eat mentandequi t abl et r eat mentofshar ehol der s 12. Toencour ageenhancedper f or mancebyt heboar dandmanagement ,i ti s r ecommendedt hatt hef ol l owi ngshoul dbeadopt edex cept Di st i ngui shbet weennonex ecut i v edi r ect or ’ sr enumer at i onf r om t hatofex ecut i v es Ar enumer at i oncommi t t ee Di sc l osur eoft hepr ocessf orper f or manceev al uat i onoft heboar d,i tcommi t t ees, i ndi vi dualdi r ect or sandbyex ecut i v es. Est abl i s hpol i c i esonr i sksov er s i ghtandmanagement . 13. Thebasi cpr i nc i pl eoft r anspar enc yandf ul l di scl osur ef oreffect i v ecor por at e gov er nancer espondsposi t i v el yt ot hef ol l owi ngquest i onsex cept Doest heboar dmeett hei nf or mat i onneedsofi nvest mentcommuni t i es ? Doest heboar dofdi r ect or ssaf eguar di nt egr i t yi nt hefinanci alr epor t i ng? Hast heboar dbui l tl ongt er m sust ai nabl egr owt hi nt heshar ehol der s ’v al uef ort he cor por at i on? Canandout si dermeani ngf ul l yanal yz et hefir m’ sact i onandper f or mance? 14. Thebasi cpr i nc i pl eofaccount abi l i t yf oreffect i vegover nanceanswer st he f ol l owi ngquest i onsposi t i v el y ,ex c ept

Doest heboar dpr omot eobj ect i v e,et hi calandr esponsi bl edeci si onmaki ng? Doest heboar dl aysol i df oundat i onsf ormanagementov er si ght ? Doest heboar dr ecogni z eandmanager i sk ? Doest hecomposi t i onmi xofboar dmember shi pensur eanappr or i at er angeand r i skofexper t i se,di v er si t y ,knowl edgeaddedv al ue? 15. Goodgov er nancemeanst hepr ocessandi nst i t ut i onspr oducer esul t st hatmeet t heneedsofsoci et ywhi l emaki ngt hebestuseofr esour cesatt hei rdi sposal . Account abi l i t y Par t i ci pat i on Responsi v eness Effect i v eness&effici ency 16. Whi choft hef ol l owi ngi snott hespeci ficact i vi t yoft heExt er nalAudi t or s ? Noneoft hese Ot herser vi cessuchast axorconsul t i ng Audi tofpubl i ccompanyfinanci alst at ement s Audi tofnonpubl i ccompanyfinanc i alst at ement s 17. Whi choft hef ol l owi ngi snott hespeci ficact i vi t yoft heBoar dofAccount ancy ? Appr ovi ngaccount i ngpr i nci pl es Appr ovi ngaudi t i ngst andar ds Educat i ngmember sofaudi tandaccount i ngr equi r ement s Sel ect i ngt heex t er nalaudi tfir m. 18. Ani ndependentdi r ect ori sex pect edt o Appl yexper t i seandski l l si nt hecor por at i onsbesti nt er est . Assetmanagementt ok eepper f or manceobj ect i v esatt het opofi t sagenda. Respectt hecol l ect i ve,cabi netnat ur eoft heboar d’ sdeci si on. Actascondui tbet weent heboar dandt heor gani z at i on.

19. Thef ol l owi ngar et hemanagement‘ sr espons i bi l i t yf r om afinanci alr epor t i ng per spect i ve,ex cept

I mpl ementas y st em ofi nt er nalcont r olt hatassur escompl et enessandaccur acyi n financi al r epor t s . Choosewhi chaccount i ngpr i nci pl esbestf ort hecompanyt r ansact i ons. Ensur et hatfinanci alst at ement scont ai nsacc ur at eandcompl et edi scl osur e. Ensur et hatt heor gani z at i oni sr unaccor di ngl yt ot heor gani zat i on’ schar t erandt hat t her ei spr operacc ount abi l i t y. 20. Appr ov i ngannual financi alr epor t sandot herpubl i cdocument sar especi fic r esponsi bi l i t i esof Shar ehol der s Management Boar dofDi r ect or s Empl oy ees 21. Whi choft hef ol l owi ngcompany’ sr esour cest hemanagementi sr esponsi bl et o manage? Fi nanci al Phy s i cal Al l oft hese Human 22. Thef ol l owi ngar eamongt hespeci ficact i vi t i esofSECex cept I nt er act i ngwi t ht heFi nanci alRepor t i ngSt andar dsCounci li nset t i ngaccount i ng st andar ds. Revi ewi ngfil i ngswi t ht heSEC. Eval uat i ngi nt er nalcont r ol s. I dent i f ycor por at ef r auds ,i nvest i gat ecauses ,andsuggestr emedi alact i ons. 23. Whoi sr esponsi bl ef orensur i ngt heaccur acy ,t i mel i nessofpubl i cr epor t i ngof financi al andot heri nf or mat i onf orpubl i ccompani es ?

Ext er nal audi t or s Shar ehol der s Secur i t i esandex changecommi ssi on Boar dofAccount ancy

24. Whoper f or msaudi tofcompani esf orcompl i ancewi t hcompanypol i ci esand l aws,audi t sandeffic i encyofoper at i onsandper i odi cev al uat i onandt est sof cont r ol s ? Chi efAccount ant I nt er nal audi t or s Commi ssi ononAudi t Ext er nal audi t or s 25. Pr ovi di ngov er s i ghtoft hei nt er nalandex t er nalaudi tf unct i on,t hepr ocessof pr epar i ngt heannualfinanci alst at ement sandpubl i cr epor t soni nt er nalcont r ol ar et her esponsi bi l i t yof Boar dofDi r ect or s Chi effinanci al officer Audi tcommi t t eeoft heboar dofdi r ect or s Chi efex ecut i v eoffic er...