- CFA Exams
- CFA Level I Exam
- Topic 3. Corporate Issuers
- Learning Module 3. Corporate Governance: Conflicts, Mechanisms, Risks, and Benefits
- Subject 2. Corporate Governance Mechanisms
CFA Practice Question
Which of the following statements is false with respect to the responsibilities of the board of directors?
A. Submit financial statements to the independent auditors.
B. Hire the CEO and determine the level and composition of compensation for that role.
C. Establish a system of performance measurement and evaluation.
Explanation: The role of preparing and submitting financial statements to independent auditors falls on management. However, the board is responsible for appointing the independent auditor.
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