QUIZ #2

Corporate Governance, Business Ethics, Risk Management and Internal Control

March 23, 2024

Below is a summary of the SEC listing requirements for audit committee responsibilities of companies
listed on this stock exchange. For each requirement, state how it is intended to help to address the risk of
fraud in publicly traded organizations.
a. Obtaining each year a report by the external auditor that addresses the company’s internal control
procedures, any quality control or regulatory problems, and any relationships that might threaten
the independence of the external auditor.
b. Discussing the company’s financial statements with management and the external auditor.
c. Discussing in its meetings the company’s earnings press releases, as well as financial information
and earnings guidance provided to analysts.
d. Discussing in its meetings policies with respect to risk assessment and risk management.
e. Meeting separately with management, internal auditors, and the external auditor on a periodic basis
f. Reviewing with the external auditor any audit problems or difficulties that they had with
management.
g. Setting clear hiring policies for employees or former employees of the external auditors.
h. Reporting regularly to the board of directors.