Final Review – B1: Corporate Governance

Question 1

Risk profile

Answer 1

Collective view of different risks at a particular level (length of a loan), and how management considers the type, servereity, interdependencies of the risk, and how it affects performance and business objectives

Question 2

COSO Framework

Answer 2

control environment, risk assessment, information and communication, monitoring activities, and existing control activities

Question 3

enterprise risk management (ERM)

Answer 3

every entity exists to provide VALUE to stakeholders and face risk in pursuit of that value

Question 4

code of conduct rules

Answer 4

only need to verify a code of conduct covers all senior officers

Question 5

internal control integrated framework; sequence of a controller’s review

Answer 5

start w/ OVERALL ASSESSMENT

then compare assessment to components, and conclude with a summary of int control def.

Question 6

system interface design

Answer 6

shows how users and functions, both internal and external, interface to an organization’s systems

Question 7

3 key things issuers must disclose

Answer 7

transactions with principal shareholders, existence of an expert on the audit committee, management’s assessment on the effectiveness of internal control