The Audit Committee Oversight

Question 1

What key factor influences whether an audit committee is effective or merely ceremonial?

Accepted Answer

The level of independence and expertise

Question 2

Do you think the reasons discussed for declining to serve or leaving a board/AC position are justified? (no points)

Accepted Answer

No, Yes

Question 3

Which of the following is NOT a common financial reporting risk area reviewed by the audit committee?

Accepted Answer

Employee hiring policies

Question 4

Which of the following is the most prominent risk that board members face?

Accepted Answer

Reputation Risk

Question 5

Which of the following is not a view of governance?

Accepted Answer

Collaboration theory

Question 6

What is one primary responsibility of the audit committee?

Accepted Answer

Overseeing financial reporting and auditing processes

Question 7

How do effective audit committees typically set meeting agendas?

Accepted Answer

The committee chair, with input from members and auditors, sets the agenda

Question 8

Which view of audit committees do you agree with? (no points)

Accepted Answer

Agency theory, Mix of both, Institutional Theory, Neither

Question 9

Which of the following is not a concern found as a result of the Paris trial?

Accepted Answer

Audit committee independence

Question 10

Which of following describes stewardship theory?

Accepted Answer

presumes managers are honest and capable stewards of company resources

Question 11

Why do some prospective board members decline to serve or leave a board, according to the study?

Accepted Answer

Concerns about management’s integrity and ethical issues

Question 12

What post-SOX trend did the study identify regarding audit committee meetings?

Accepted Answer

Committees began meeting more frequently and for longer durations

Question 13

Management should drive the agenda for board meetings

Accepted Answer

False

Question 14

What infamous corporate example was used as an example of poor audit committee oversight?

Accepted Answer

Hollinger International

Question 15

I would like to be a board member or audit committee member one day. (no points)

Accepted Answer

True

Questions 15