Which of the Following Was NOT a Finding of the Cadbury

question 9

Multiple Choice

Which of the following was NOT a finding of the Cadbury Commission?

• A)Audit and compensation committees should be made up entirely of independent directors or,at least,have a majority of them.
• B)Auditors should be rotated,and there should be fuller disclosure of non-audit work.
• C)The CEO should not be chairman of the board,and at the very least there should be a lead independent director with similar agenda-setting powers.
• D)The CEO and the CFO should personally attest to the accuracy of the financial statements presented to shareholders.

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Definitions:

Notre-Dame At Fontenay

Refers to the Cistercian Abbey of Notre-Dame at Fontenay in Burgundy, France, a prime example of Romanesque monastic architecture from the 12th century.

Insurance

A financial product or agreement where an individual or entity receives financial protection or reimbursement against losses from an insurance company.

Inherent Risks

Risks that exist naturally within a project or activity, regardless of any mitigating strategies.

Efficient Markets Hypothesis

A theory stating that asset prices fully reflect all available information, making it impossible to consistently achieve higher returns than the average market return.