Which of the following best describes the role that corporate governance plays in a company?

Auditing: A Risk Based-Approach (MindTap Course List)
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ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter2: The Auditor’s Responsibilities Regarding Fraud And Mechanisms To Address Fraud: Regulation And Corporate Governance
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Which of the following best describes the role that corporate governance plays in a company?
Shareholders vote to decide who should be members of the board of directors.
Holding the management team accountable to shareholders and other stakeholders for how they use the
entity's resources.
Management often is compensated based on the company's profitability.
Management decides which accounting principles are the most appropriate.
Transcribed Image Text:Which of the following best describes the role that corporate governance plays in a company? Shareholders vote to decide who should be members of the board of directors. Holding the management team accountable to shareholders and other stakeholders for how they use the entity's resources. Management often is compensated based on the company's profitability. Management decides which accounting principles are the most appropriate.
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