CIA Exam Part 1 - Chapter 3: Corporate Social
Responsibility Exam Questions and Answers
What is the definition of Governance? - ✔✔The combination of processes and structures
implemented by the BOARD to INFORM, DIRECT, MANAGE, AND MONITOR the activities of the
organization toward the achievement of its objective
What is the definition of Corporate Governance? - ✔✔Corporate governance involves a set of
relationships between a company's management, its board, its shareholders, and other
stakeholders.
Stakeholders are person or entities who are affected by the activities of the entity. Who are
examples? - ✔✔1. Shareholders
2. Employees
3. Suppliers
4. Customers
5. Neighbors of entity's facilities
6. Government regulators
What are examples of INTERNAL mechanisms that influence corporate governance? - ✔✔1.
Corporate charters
2. Bylaws
3. Boards of directors
4. Internal audit functions
What are examples of EXTERNAL mechanisms that influence corporate governance? - ✔✔1.
Laws
2. Regulations
, 3. Government regulators
Effective governance considers risk when setting strategy. What does risk management rely on?
- ✔✔1. Effective Governance TONE AT THE TOP
2. Risk Appetite
3. Tolerance
4. Risk Culture
5. Oversight
What are the two major components of governance? - ✔✔1. Strategic Direction
2. Oversight
What does Strategic Direction determine? - ✔✔1. The Business Model
2. Overall objectives
3. Approach to risk taking (risk appetite)
4. Limits of organizational conduct
What is the governance component IA is most concerned? - ✔✔OVERSIGHT
**Also the component risk management and control activities are most likely to be applied
What are two elements of oversight? - ✔✔1. Risk management activities performed by senior
management and risk owners
2. Internal and external assurance activities
Responsibility Exam Questions and Answers
What is the definition of Governance? - ✔✔The combination of processes and structures
implemented by the BOARD to INFORM, DIRECT, MANAGE, AND MONITOR the activities of the
organization toward the achievement of its objective
What is the definition of Corporate Governance? - ✔✔Corporate governance involves a set of
relationships between a company's management, its board, its shareholders, and other
stakeholders.
Stakeholders are person or entities who are affected by the activities of the entity. Who are
examples? - ✔✔1. Shareholders
2. Employees
3. Suppliers
4. Customers
5. Neighbors of entity's facilities
6. Government regulators
What are examples of INTERNAL mechanisms that influence corporate governance? - ✔✔1.
Corporate charters
2. Bylaws
3. Boards of directors
4. Internal audit functions
What are examples of EXTERNAL mechanisms that influence corporate governance? - ✔✔1.
Laws
2. Regulations
, 3. Government regulators
Effective governance considers risk when setting strategy. What does risk management rely on?
- ✔✔1. Effective Governance TONE AT THE TOP
2. Risk Appetite
3. Tolerance
4. Risk Culture
5. Oversight
What are the two major components of governance? - ✔✔1. Strategic Direction
2. Oversight
What does Strategic Direction determine? - ✔✔1. The Business Model
2. Overall objectives
3. Approach to risk taking (risk appetite)
4. Limits of organizational conduct
What is the governance component IA is most concerned? - ✔✔OVERSIGHT
**Also the component risk management and control activities are most likely to be applied
What are two elements of oversight? - ✔✔1. Risk management activities performed by senior
management and risk owners
2. Internal and external assurance activities
