Corporate Governance Flashcards

Flashcards on Corporate Governance

__ refers to the process of decision-making and the process by which decisions are implemented.

A process whereby elements in society wield power, authority and influence and enact policies and decisions concerning public life and social upliftment.

The major characteristics of _ are:

Participation, Rule of Law, Transparency, Accountability, Responsiveness, Consensus Oriented, Effectiveness & Efficiency, Equity & Inclusiveness

Good governance requires __.

Requires fair legal frameworks that are enforced impartially.

Equity and _

Ensures that all its members feel that they have a stake in it and do not feel excluded from the mainstream of society.

___ ___ is defined as…

The system of rules, practices and processes by which business corporations are directed and controlled.

The purpose of ___ is…

To facilitate effective, entrepreneurial and prudent management that can deliver long-term success of the company.

The basic objectives of ___ are…

Fair and Equitable Treatment of shareholders, Self-Assessment, Increase shareholders' Wealth, Transparency and Full Disclosure

Effective corporate governance is…

Transparent, Protects the rights of shareholders, Includes both strategic and operational risk management.

A company should lay solid foundation for management and ___.

Formalize and disclose the functions reserved to the board and those delegated to management.

Structure the board to add ___.

A board should have independent directors.

Promote ethical and responsible -.

Establish a code of conduct to guide the directors

The essence of any system of good is to allow…

The board and management have the freedom to drive their organization forward and to exercise that freedom within a framework of effective accountability.

Governance starts with the shareholders/owners delegating responsibilities through an elected _ __

Board of Directors

In return for the responsibilities (and power) given to and the board, governance demands accountability back through the system to the shareholders.

Management

The owners want accountability on such things as…

Financial performance, Financial transparency, Stewardship, Quality of internal control, Composition of the board of directors

From a financial reporting perspective, it is __ responsibility to:

Choose which accounting principles best portray the economic substance of company transactions, Implement a system of internal control that assures completeness and accuracy in financial reporting, Ensure that the financial statements contain accurate and complete disclosure.

Provide effective oversight through election of ____ ..

Board of Directors

Selecting and /or approving the appointment of the Chief _

Internal Auditors

Management: Operations and . Provide _ and reports to shareholders and other stakeholders

Accurate and timely reports to shareholders and other stakeholders

Effective governance is important to the conduct of an audit for one very simple reason: …

Companies with effective corporate governance are less likely to experience fraud and are therefore less risky to audit.