1. Recent reforms have had greater focus on all of the items below, except:

a. All the items listed have had greater focus in recent reforms

b. Increase communication with major shareholders

c. Greater transparency

d. Increased Accountability

e. Director Independence

f. Ensuring the board chairman and the CEO are the same

2. Which statement is False?

a. Directors need to know about the company's financial results and its competitive position.

b. The board chairman should practice diplomacy.

c. The board's primary role is a fiduciary one.

d. The nonexecutive board chairman should give the impression that he/she is running the show.

e. Behavioral characteristics are a major determinant of board effectiveness

3. Which statement is False regarding board evaluations:

a. All the statements are True

b. Involve self-assessments

c. Are used to determine if the director is suitable for reelection

d. Are confidential

e. Consider the director's independence

f. Identify areas of improvement

g. Consider the level of contribution of the director

4. Which statement is False?

a. The COSO Internal Control Framework does not define responsibilities for duties

b. The Three Lines of Defense addresses how specific duties related to risk and control could be assigned and coordinated within an organization, regardless of its size or complexity.

c. Organizations use the components and principles of the Three Lines of Defense model to implement effective controls and manage its risks.

d. All of the statements are True.

e. An organization may decide to fully accept some of its risks.

f. Designing and implementing effective internal control can mitigate risks.

5. Select the best statement.

a. The best Boards set a tone that reverberates throughout its employees and customers.

b. The best Boards set a tone that reverberates throughout its customers. Employees, shareholders, and the communities it serves.

c. The best Boards set a tone that reverberates throughout its employees, customers, and shareholders.

6. Which statements is False? Select the best answer.

a. The board chairman must know how to create focus amongst the board members.

b. The board chairman must have good communication skills

c. The board chairman needs to have good people skills.

d. The board chairman should be direct and concise, even if it offends another director.

e. All the statements are True

7. Which statements is False?

a. Neither senior management, external auditors, nor the board of directors is considered to be part of either of the three lines of defense.

b. Internal auditors do not design or implement controls as part of their normal responsibilities.

c. Regulators often play an important role regarding the organization's overall governance and control structure.

d. All of the statements are True.