CFA ESG Exam Chapter 5

Which element of governance most likely has heightened importance in larger companies as opposed to smaller ones

the effective operation of governance processes

in the evloution of coprorate governance frameworks, which practice developed most recently

establishment of auditor oversight regulatory bodies

the interest of institutional investors are most likely protected through

pre-emptive rights

which of the following is considered a principal committee in place on the board of most major companies

nominations committee

the effectiveness of a board chair is best evaluated by

assessing the quality of directors on the board

which executive remuneration concern is most likely expressed by board memners

the executive pay structure does not incentivize execs to deliver max value

french and US corp gov practices are most likely similar with respect to

board structure and type of chair

which element of enhanced auditor reports most likely provides insight into the auditors assessment of the company’s financial controls

performance materiality number

the governance analysis of a public equity investment will differ most significantly from that of an investment in

sovereign debt

which of the following best supports board members in large, complex companies in fulfilling their responsibilities effectively?

processes

which of the following is specific to general madnate resolutions applying to companies established in Hong Kong SAR? Without seeking shareholders consent, a companys board of directors can decide on additional share issuances of up to

20%

which of the following reflects the role of a sunset clause

reduces the risk of negative company performance related to dual class shares

the responsibility for fairly reporting a company’s financial position lies within the companys

board of directors

one difference between the corporate governance practices in japan and those in sweden relates to the

prevalence of single tier versus two tier boards

in line with best global corporate governance practices, which of the following committees could consist of both independent and non independent members

nominations committee

the intro of AI and tech innovation to the audit process is most likely to reduce

number of undiscovered fraud cases resulting from the sampling approach to audit

according to the ICGNs global governance principles, which of the following would raise questions about the independence of a member of the board of directors? The director:

acted as the company's exec before joining the board of directors

what are the two A’s that lie at the heart of corporate governance

accountability and alignment

which of the following is least likely to explain why the role of the chair of a company board is so important

the chair will usually also be the CEO

which of the following is not a board committee expected to be established at all companies

risk

which of the following scandals did not motivate the creation of the first corporate governance code

enron

which of the following phrases is commonly used to describe the model created by the cadbury code for adherence to its principles

comply or explain

which element of executive pay is most likely to include some metric based on ESG performance

annual bonus

which of the following does not typically raise questions regarding an individual directors independence

not having been on the board long enough to fully understand the business

what US legislation led to the creation of the PCAOB

SOX act

Which european scandals in 2003 led to a reassessment of the continents approach to corporate governance

ahold and parmalat

which area of ethical corporate behavior is most likely to be subject to extraterritorial legislation?

anti-corruption

which is the only major world market that does not as of 2023 have a corporate governance code

USA

which statement outlines the distinction between the auditors role in relation to the financial statements and the auditors role in relation to the rest of the annual report and accounts

assurance on the financial statements and a report on the inconsistencies in narrative reporting

for how long can an audit firm remain in that role at an EU public company

20 years

which of the following is not one of the three key elements of disclosure in the new enhanced auditor reports?

skepticism

which of the following is not likely to be considered a G factor by a sovereign debt investor

independence of board members

which of the following statements is least accurate? the corporate governance framework in india requires that the board of directors of listed companies must

be composed entirely of non-directors

which of the following countries introduced a corporate governance code in 2018

brazil

which of the following companies was blacklisted by the world bank over charges of bribery

satyam

which of the following refers to a lesson learned from a corporate governance failure

clear delineations should exist between finance and operations management

In which of the following countries is the use of promoters a key characteristic of ownership structure?

india