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    Ae10 - Governance, Business Ethics, Risk MGNT & Internal Control Prelim Exam Raquel Alvarez-De Castro, Cpa, Mba/Mpa

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    Wenjun
    This document contains sample exam questions for a preliminary exam on governance, business ethics, risk management, and internal controls. The multiple choice questions test knowledge of audit committee activities and SEC mandated responsibilities. The problems sections ask the test taker to explain how specific SEC corporate governance requirements and audit committee responsibilities help address the risk of fraud in publicly traded organizations.

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    Ae10 - Governance, Business Ethics, Risk MGNT & Internal Control Prelim Exam Raquel Alvarez-De Castro, Cpa, Mba/Mpa

    Uploaded by

    Wenjun
    392 views2 pages
    This document contains sample exam questions for a preliminary exam on governance, business ethics, risk management, and internal controls. The multiple choice questions test knowledge of audit committee activities and SEC mandated responsibilities. The problems sections ask the test taker to explain how specific SEC corporate governance requirements and audit committee responsibilities help address the risk of fraud in publicly traded organizations.

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    AE10-Prelim

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    This document contains sample exam questions for a preliminary exam on governance, business ethics, risk management, and internal controls. The multiple choice questions test knowledge of audit committee activities and SEC mandated responsibilities. The problems sections ask the test taker to explain how specific SEC corporate governance requirements and audit committee responsibilities help address the risk of fraud in publicly traded organizations.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    392 views2 pages

    Ae10 - Governance, Business Ethics, Risk MGNT & Internal Control Prelim Exam Raquel Alvarez-De Castro, Cpa, Mba/Mpa

    Uploaded by

    Wenjun
    This document contains sample exam questions for a preliminary exam on governance, business ethics, risk management, and internal controls. The multiple choice questions test knowledge of audit committee activities and SEC mandated responsibilities. The problems sections ask the test taker to explain how specific SEC corporate governance requirements and audit committee responsibilities help address the risk of fraud in publicly traded organizations.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    AE10 – GOVERNANCE, BUSINESS ETHICS, RISK MGNT & INTERNAL CONTROL

    PRELIM EXAM
    RAQUEL ALVAREZ-DE CASTRO, CPA, MBA/MPA

    I.Multiple Choice Questions

    1. Audit committee activities and responsibilities include which of the following?


    a. Selecting the external audit firm.
    b. Approving corporate strategy.
    c. Reviewing management performance and determining compensation.
    d. None of the above.

    2. Which of the following audit committee responsibilities has the SEC mandated?
    a. Obtaining each year, a report by the internal auditor that addresses the
    company’s internal control procedures, any quality control or regulatory
    problems, and any relationships that might threaten the independence of the
    internal auditor.
    b. Discussing in its meetings the company’s earnings press releases, as well as
    financial information and earnings guidance provided to analysts
    c. Reviewing with the internal auditor any audit problems or difficulties that they
    have had with management
    d. All of the above
    II.Problems
    1.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. Boards need to consist of at least 3 independent directors or 1/3 of the board which is
    higher
    b. Boards need to hold regular executive sessions of independent directors without
    management present.
    c. Boards must have a / corporate governance committee composed at least 3 of
    independent directors
    d. The corporate governance committee must have a written character that addresses the
    committee’s purpose and responsibilities, and there must be annual performance
    evaluation of the committee.
    e. Boards must have and audit committee with a minimum of three independent members
    f. The audit committee must have a written charter that addresses the committee’s
    purpose and responsibilities, and the committee must produce and audit committee
    report; there must also be an annual performance evaluation of the committee

    2.Below is a summary of the SEC listing requirements for audit committee responsibilities of
    companies listed on this stock exchange. For each requirement, state how it is intended to help
    to address the risk of fraud in publicly traded organizations.
    a. Obtaining each year, a report by the external auditor that addresses the company’s
    internal control procedures, any quality control or regulatory problems, and any
    relationships that might threaten the independence of the external auditor
    b. Discussing the company’s financial statements with management and the external
    auditor
    c. Discussing in its meetings the company’s earnings press releases, as well as financial
    information and earnings guidance provided to analysts
    d. Discussing in its meetings policies with respect to risk assessment and risk management
    e. Meeting separately with management, internal auditors, and the external auditor on a
    periodic basis
    f. Reviewing with the external auditor any audit problems or difficulties that they had with
    management
    g. Setting clear hiring policies for employees or former employees of the external auditors
    h. Reporting regularly to the board of directors

    _______________________________NOTHING FOLLOWS______________________________________

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