16)An Internal Control System will not

Help obtain an understanding of the business and the risks it faces

Assists compliance with laws and regulations

Helps ensure the reliability of internal and external reporting

Facilitates the effectiveness and efficiency of operations

17)According to audit committee best practice, they should not

a) Review the internal control system

b) Approve remuneration of the external auditor

c) Nominates the executive board members

d) Monitor the integrity of the companys financial statement

e) Set policies on internal control

Only c)

Both a) and e)

Only c) , d) and e)

Both c) and e)

18)Saneguard is a large bottling company. Saneguards Board of Directors has seven members. Each director is elected based on aptitude, knowledge, experience and leadership criteria. All Board members and their representatives attend meetings. Four of these members and their corresponding alternates are independent. The Chairman of the Board, also independent, represents the minority shareholders.

At Saneguard, the positions of CEO and Chairman of the Board are filled by different individuals. Saneguard's external auditors reports to the Board of Directors and the Audit Committee, while the chief of internal audit reports to the CEO and Audit Committee.

Which of the following is not true according to the international code of corporate governance?

The role of chairman and chief executive officer should not be separated. The positions of CEO and Chairman of the Board in Saneguard are filled by different individuals.

The Audit committee should review and monitor external auditor's independence and objectivity and the effectiveness of the audit process. Saneguard external auditors reports to the Board of Directors and the Audit Committee.

At least half the board, excluding the chairman, should comprise non-executive directors Saneguards Board of Directors has seven members. Four of these members and their corresponding alternates are independent. The Chairman of the Board is also independent.

The AGM should be used to communicate with investors and encourage their participation. All Board members (directors) in Sanegauard and their representatives attend meetings.