Week 5 - Who is Responsible for Internal Control

Question 1

What does the Corporate Governance Code say?

Answer 1

The board of directors should establish and maintain an effective risk management and internal control framework - this applies to all listed companies

Question 2

What should the board do?

Answer 2

Monitor the company’s risk management and internal control framework and, at least annually, carry out a review of its effectiveness

Question 3

What should the monitoring and review cover?

Answer 3

All material controls, including financial, operational, reporting and compliance controls

Question 4

What is the first thing the board should provide in the annual report?

Answer 4

A description of how the board has monitored and reviewed the effectiveness of the framework

Question 5

What is the second thing the board should provide in the annual report?

Answer 5

A declaration of effectiveness of the material controls as at the balance sheet date

Question 6

What is the third thing the board should provide in the annual report?

Answer 6

A description of any material controls which have not operated effectively as at the balance sheet date, the action taken, or proposed, to improve them, and any action taken to address previously reported issues

Question 7

What is the Corporate Governance code made up of?

Answer 7

Principles and provisions that support these principles