MN20501 Lecture 4 Review Questions

Auditing and Corporate Governance

1. Can the audit expectations gap be closed? Discuss why or why not.
2. Explain the auditor’s responsibilities with regard to the prevention of fraud and
evaluate to what extent this contributes to the audit expectations gap.
3. Discuss the arguments for and against the mandatory rotation of auditors.
4. To what extent does having non-executive directors on the Board contribute to
improved corporate governance? Discuss.
5. Discuss the potential consequences of having the same individual serve as CEO
and Chair of the Board of Directors on a given company.
6. Consider and explain if there are reasons why the roles of CEO and Chair should
not be separated.
7. What are the main duties of an Audit Committee? And to what extent might an
Audit Committee contribute to narrowing the audit expectations gap?

For exam preparation purposes, treat each question as a potential 8 – 12 mark

question rather than a full essay question.