Which two of the selected extracts from the Turnbull report is wrongly stated? a. Principle D2; The
Question:
Which two of the selected extracts from the Turnbull report is wrongly stated?
a. Principle D2; The board should maintain a sound system of internal control to safeguard shareholders’ investment and the company’s assets.)
b. Principle D2.1; The directors should, at least annually, conduct a review of the effectiveness of the group’s system of internal control and should report to shareholders that they have done so. The review should cover all controls, including financial, operational and compliance controls and risk management.
c. Principle D.2.2; Companies which do not have an internal audit function should be required to establish such a function.
d. a narrative statement of how it has applied the principles set out in Section 1 of the Combined Code, providing explanation which enables its shareholders to evaluate how the principles have been applied.
e. a statement as to whether or not it has complied throughout the accounting period with the Code provisions set out in Section 1 of the Combined Code.
f. The intention is that companies should be told how to explain their governance policies in the light of the principles, including any special circumstances which have led them to adopting a particular approach.
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