Judgments
Topic-1.-Governance-Risk-and-Compliance-Corporate-Governance-questions-.docx
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Topic-1.-Governance-Risk-and-Compliance-Corporate-Governance-questions-.docx
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Question 1aq.corp.gov.003_1802
Which board of directors committee is charged with overseeing the financial
reporting process?
The audit committee
The compensation committee
The financial committee
The governance committee
You Answered Correctly!
This is correct. The audit committee is charged with overseeing the financial
reporting process.
Question 2
aq.corp.gov.006_1802
Which of the following correctly describes the Sarbanes-Oxley Act
requirements with respect to auditor rotation?
The audit firm must rotate the lead audit partner every five years.
The company being audited must rotate the audit firm every five years.
The audit firm must rotate the audit staff every five years.
The company being audited must rotate the audit committee every five years.
This Answer is Correct
This is correct. This requirement is described in Section 201 of the Sarbanes-
Oxley Act.
Question 3
1E1-LS25
Which of the following are provisions of the Sarbanes-Oxley Act?
I. The board of directors of an issuer must appoint an audit committee.
II. Management must certify financial statements.
III. Management must provide a written report on the effectiveness of
internal control procedures within 90 days of the publication of the
annual report.
IV. A public accounting firm may not audit the books of an issuer of public
securities if any officer or director of the issuer was employed by the
public accounting firm and participated in any audit activity with the
issuer within one year.
V. I, II, and IV
only.
I, II, III, and
, IV.
II and IV
only.
IV only.
This Answer is Correct
All of the listed requirements are provisions of the Sarbanes-Oxley Act.
Question 4
aq.corp.gov.001_1802
How entities are systematically directed and controlled refers to which of the
following?
Corporate
governance
Sustainability
Agents
Internal controls
This Answer is Correct
This is correct. Corporate governance refers to how entities are systematically
directed and controlled, including the oversight and obligations of the board of
directors, management, and the audit committee.
Question 5
1E1-LS26
The Sarbanes-Oxley Act has multiple sections that outline management's
responsibility regarding:
required education for chief financial officers.
internal controls and external reporting.
long-term strategic planning.
the purchase of securities.
This Answer is Correct
The Sarbanes-Oxley Act concentrates on management's responsibility in
maintaining internal controls so that external reports become more reliable.
Question 6
1E1-LS23
Which of the following are responsibilities of the audit committee?
I. Aid in the choice of accounting methods and policies.
II. Document internal control procedures.
III. Sign quarterly and annual financial reports.
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