Chapter 4: Review and Questions

1. Assume that management had determined that its organizations audit committee is not effective. How do the weaknesses in audit committee affect management's evaluation of internal control over financial reporting? Would an ineffective audit committee constitute a material weakness in internal control over financial reporting? State the rationable for your response.

2. Why is there a need for a corporation to maintain a comprehensive and cost-efficient communication channels to shareholders and other investors?

3. What is the object of the company in having a, strong and effective internal control system?

4. What is the purpose having an independent internal audit function in a publicly-listed corporation?

5. Give a least four (4) responsibilities of the Chief Audit Executive.

6. Enumerate the activities of the Risk Management department in a publicly-listed corporation.

7. To what may be the shareholders' rights relate?

8. How many participation of employee in corporate governance be encouraged?

9. True or False. Sustainability reporting includes voluntary corporate disclosure about sustainability initative, plans, and associated outcomes.

10. True or False. The terms non-financial reporting, corporate social responsibilities reporting and triple bottom-line reporting are each sustainability-relate terms.

11. Defined the terms non-financial reporting corporate social responsibility reporting and triple bottom-line reporting. How do these terms relate to sustainability reporting?

12. What factors have driven the demand for sustainability reporting?

13. Why is there demand for independent assurance on sustainability reporting?

14. In unethical for a company to provide a sustainability report, but provide no assurance on the reliability of the information contained therein?