- CFA Exams
- CFA Level I Exam
- Study Session 10. Corporate Finance (1)
- Reading 31. Introduction to Corporate Governance and Other ESG Considerations
- Subject 5. Board of Directors and Committees
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.
User Contributed Comments 0
You need to log in first to add your comment.