Quiz 1 (Chapter 1-2) Governance

Quiz 1 (Chapter 1-2) Governance

Governance and Ethics

University
University of the Visayas

Course
Conceptual Framework (ACCO 20083)
Was this document helpful?
Academic year
2019/2020 0 0

Helpful?

0 0

Comments

Please sign in or register to post comments.

Related Studylists

ACC 112
 Quiz 1
(Chapter1-2)
1. To encourage enhanced performance by the board and
management, it is recommended that the following
should be adopted except
a) Distinguish between non-executive director’s
remuneration from that of executives
b) Disclosure of the process for performance
evaluation of the board, it committees, individual
directors and by executives.
c) Establish policies on risks oversight and
management
d) A renumeration committee
2. Good governance means the process and institutions
produce results that meet the needs of society while
making the best use of resources at their disposal.
a) Effectiveness & efficiency
b) Responsiveness
c) Participation
d) Accountability
3. The basic principle of transparency and full disclosure for
effective corporate governance responds positively to the
following questions except
a) Can and outsider meaningfully analyze the firm’s
action and performance?
b) Does the board of directors safeguard integrity in
the financial reporting?
c) Has the board built long-term sustainable growth
in the shareholders’ value for the corporation?
d) Does the board meet the information needs of
investment communities?
4. The following questions indicate a firm’s conformance
and compliance with corporate control except
a) Does it promote objective, ethical and
responsible decision making?
b) Does it encouraage enhanced performance?
c) Does it recognize the legitimate interests of
stakeholders?
d) Does it recognize and manage risk?
5. The characteristic of good governance which requires that
the institution and processes try to serve the needs of all
stakeholders within a reasonable timeframe.
a) Effectiveness and efficiency
b) Timeliness
c) Responsiveness
d) Accountability
6. Requires mediation of the different interest in society to
reach a broad agreement on what is the best interest of
the whole community.
a) Consensus Oriented
b) Equity and inclusiveness
c) Participation
d) Responsiveness
7. The basic principle of accountability for effective
governance answers the following questions positively,
except
a) Does the board recognize and manage risk?
b) Does the board lay solid foundations for
management oversight?
c) Does the board promote objective, ethical and
responsible decision making?
d) Does the composition mix of board membership
ensure an appropriate range and risk of
expertise, diversity, knowledge added value?
8. The audit committee is structured so that it is consists of
the following except
a) An independent chairperson who is not
chairperson of the board
b) At least three (3) members
c) An employee with unquestionable integrity.
d) Only non-executive or independent directors
9. The main objective of corporate governance is to protect
the long-term interest of the shareholders.
a) Fair treatment and equitable treatment of
shareholders
b) Increase shareholders’ wealth
c) Transparency and full disclosure
d) Self-assessment
10. Which of the following basic of principles of effective
corporate governance this question” Does it encourage
enhanced performance? is intended for
a) Self-assessment
b) Accountability
c) Corporate control
d) Transparency and full disclosure
11. Transparency and full disclosure principle advocate the
following except
a) Sound disclosure policies and practices
b) Meeting the information needs of investment
communities
c) Solid foundations for management oversight
d) Safeguards integrity in financial reporting.
12. The characteristics of good governance where fair legal
framework are enforced impartially is
a) Participation
b) Accountability
c) Equity
d) Rule of law
13. Who is responsible for ensuring the accuracy, timeliness
of public reporting of financial and other information for
public companies?
a) External auditors
b) Board of Accountancy
c) Securities and exchange commission
d) Shareholders
14. Approving annual financial reports and other public
documents are specific responsibilities of
a) Employees
b) Board of Directors
c) Shareholders
d) Management
15. Which of the following is not the specific activity of the
External Auditors?
a) None of these
b) Other services such as tax or consulting
c) Audit of non-public company financial
statements
d) Audit of public company financial statements
16. Providing oversight of the internal and external audit
function, the process of preparing the annual financial
statements and public reports on internal control are the
responsibility of
 a) Audit committee of the board of directors b) Corporate Control
b) Chief executive officer c) Accountability
c) Chief financial officer d) Transparency and Full Disclosure
d) Board of Directors 24. The rights of shareholders can be effectively upheld
17. An independent director is expected to through the following measures except
a) Apply expertise and skills in the corporation’s a) By designing and disclosing a communication
best interest. strategy to promote affective communication
b) Asset management to keep performance with shareholders.
objectives at the top of its agenda. b) By encouraging active participation at general
c) Respect the collective, cabinet nature of the meetings.
board’s decision. c) By requiring the external auditor to attend the
d) Act as conduit between the board and the annual general meeting and to answer questions
organization. about the audit.
18. The following are among the specific activities of SEC d) By establishing an audit committee
except 25. Which of the following company’s resources the
a) Interacting with the Financial Reporting management is responsible to manage?
Standards Council in setting accounting a) All of these
standards. b) Financial
b) Reviewing filings with the SEC. c) Human
c) Identify corporate frauds, investigate causes, d) Physical
and suggest remedial actions. 26. Effective corporate governance is transparent, protects
d) Evaluating internal controls. the right of shareholders. It is concerned in the long-term
19. Who performs audit of companies for compliance with earning potential as well as actual short-term earnings.
company policies and laws, audits and efficiency of  True
operations and periodic evaluation and tests of controls?  False
a) Internal auditors 27. Accountability cannot be enforced without transparency
b) Chief Accountant and the rule of law.
c) External auditors  True
d) Commission on Audit  False
20. The following are the management ‘s responsibility from 28. Transparency means that decisions taken and their
a financial reporting perspective, except enforcements are done in a manner that follows rules
a) Implement a system of internal control that and regulations.
assures completeness and accuracy in financial  True
reports.  False
b) Ensure that the organization is run accordingly to 29. Governance is the process of decision-making which
the organization’s charter and that there is decisions must always be implemented through the
proper accountability. exercise of power or authority.
c) Ensure that financial statements contain accurate  True
and complete disclosure.  False
d) Choose which accounting principles best for the 30. Stakeholders of a corporation includes government
company transactions. agencies, employees, suppliers, customers except
21. Which of the following is not the specific activity of the stockholders.
Board of Accountancy?  True
a) Approving auditing standards  False
b) Selecting the external audit firm. 31. Governance is highly recommended for a highly
c) Educating members of audit and accounting organized groups and therefore cannot be undertaken by
requirements small organization.
d) Approving accounting principles  True
22. To safeguard integrity in financial reporting, the business  False
firm should do the following except 32. Renumeration of equity based executive should made in
a) Request the external auditor to attend the accordance with the thresholds set in the plans approved
annual general meeting by shareholders.
b) Establish an audit committee  True
c) Disclose the functions reserved to the board and  False
those delegated to management 33. The roles of chairperson and chief executive officer may
d) Disclose the policy concerning trading in be exercised by the same individual.
company securities by directors, officers and  True
employees.  False

34. Management can influence who sits on the board and the
audit committee as well as other governance controls
23. The question “Is the board doing the right thing?” refers
that might be put into place.
to
 True
a) None of these
 False