To help with corporate governance and a positive "tone at the top," the board of directors and its committees,such as the audit committee,should
A)rubber-stamp the financial statements once per year.
B)consist of all members of executive management.
C)follow the policies and procedures approved by management.
D)take an active role in overseeing the company.

Question

Quizplus · Accepted Answer

Taking an active role in overseeing the company is the best choice to help with corporate governance and a positive "tone at the top." The board of directors and its committees, such as the audit committee, should provide independent oversight of the company's activities and make sure that management is acting in the best interest of the shareholders. They should not simply rubber-stamp the financial statements, consist of all members of executive management, or follow policies and procedures approved by management without questioning their effectiveness.

To Help with Corporate Governance and a Positive "Tone at the Top