The opening scenario of this chapter lists several questions for your group to consider.

Required

Address the following questions raised at the beginning of the chapter.

a. Why is the corporate governance of an organization important to both investors and auditors?

b. What roles do the board of directors and the audit committee play with respect to corporate governance?

c. What relationships do the board of directors and the audit committee have with the audit function?

d. Why is it important that organizations have directors and audit committee members that are competent and independent of management?

e. Why would the quality of corporate governance affect the quality of an organization's financial performance and the conduct of the external audit?

f. What are the risks to the auditor if the organization does not have good corporate governance?

g. Should an auditor accept an audit engagement with an organization that does not have good governance?

h. What principles are associated with high-quality governance as it relates to boards and management?

i. What principles are associated with effective audit committees?