TRUE OR FALSE

1. A disclosure is considered material if it reflects the significant economic, environmental, and social impacts of the organization of the stakeholders, and the capacity of the stakeholders to influence the economic, environmental and social impacts or activities of the organization*

True

False

2. An internal auditor should have no personal or professional involvement with the area being audited.*

True

False

3. NASDAQ listing standards require the audit committee to review major issues regarding accounting principles and the presentation of the financial statements.*

True

False

4. External auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations*

True

False

5. Included in the Environment disclosures are the risks and opportunities due to climate change, procurement practices with respect to local suppliers and anti-corruption*

True

False

6. CFO and the audit committee depend heavily on one another*

True

False

7. Auditors are required by the Security and Exchange Commission to report to the audit committee of the publicly traded company all alternative treatments of financial information within generally accepted accounting principles that have been discussed with management officials.*

True

False

8. Audit committees of listed companies are directly responsible for the appointment, compensation, and oversight of the independent auditor, including the resolution of any disagreements with management.*

True

False

9. Independent Auditor is responsible for preparing the financial statements, establishing and maintaining adequate internal control over financial reporting (ICFR), and evaluating the effectiveness of ICFR.*

True

False

10. Under Sarbanes-Oxley Section 301 public company audit committees are directly responsible for the appointment, compensation and oversight of the work of any registered public accounting firm employed by their company.*

True

False

11. In executing their governance responsibilities, audit committees frequently interact with other stakeholders, in addition to the internal and independent auditors.*

True

False

12. the audit committee is responsible for overseeing the entire financial reporting process.*

True

False

13. The reported information shall reflect positive and negative aspects of the reporting organization's performance to enable a reasoned assessment of overall performance.*

True

False