Posted: April 14th, 2016

Which of the following is true and the best answer?

6. Which of the following is a false statement about board of directors?
a. Board members may not use corporate assets
b. Board members may not profit from the company with or without permission of the entity
c. Board members can not compete directly with the entity
d. Board members cannot be board members of a competing company (THIS IS THE ANSWER)
Answer: D, because BOD serve as a director of any competing companies

7. A company’s audit committee should have at least one member considered to be a financial expert. Which of these is not an example of a financial expert?
a. Prior experience as a controller of a large corporation
b. Previous work in a public accounting firm
c. Prior experience as an internal auditor
d. A member of a professional accounting/finance association (THIS IS THE ANSWER)
Answer: D

8. Which of the following is not one of the elements of COSO Internal Control Integrated Framework?
a. The audit committee of the board of directors (THIS IS THE ANSWER)
b. Risk assessment
c. Monitoring
d. Information/Communication
Answer: A, is not an element of COSO

9. Which of the following is not a pass-through entity?
a. LLP
b. Subchapter S corporation
c. Chapter C corporation (THIS IS THE ANSWER)
d. General partnership
Answer: C

10. Which of the following is true and the best answer?
a. The board of directors provide advice to the entity
b. The board of directors monitors and oversees senior management
c. Maintains a level of skepticism
d. All of the following are true statements (THIS IS THE ANSWER)
Answer: D, all are correct