Chapter 2, Problem 52FF

a.

To determine

Introduction: Corporate governance refers to keeping an oversight over the organizations operations and financial reporting. Corporate governance ensures that operations are in accordance with the objectives of the organizations and meet the stakeholders’ needs.

To explain: The basic principles of corporate governance that appear to have been missing.

b.

To determine

Introduction: Corporate governance refers to keeping an oversight over the organizations operations and financial reporting. Corporate governance ensures that operations are in accordance with the objectives of the organizations and meet the stakeholders’ needs.

To examine: Whether or not external auditors can expect the effectiveness of corporate governance.

c.

To determine

Introduction: Corporate governance refers to keeping an oversight over the organizations operations and financial reporting. Corporate governance ensures that operations are in accordance with the objectives of the organizations and meet the stakeholders’ needs.

To explain: The manner in which external auditors might respond to concerns about the quality of governance.

d.

To determine

Introduction: Corporate governance refers to keeping an oversight over the organizations operations and financial reporting. Corporate governance ensures that operations are in accordance with the objectives of the organizations and meet the stakeholders’ needs.

To explain: Whether or not the company should have an independent chair.

e.

To determine

Introduction: Corporate governance refers to keeping an oversight over the organizations operations and financial reporting. Corporate governance ensures that operations are in accordance with the objectives of the organizations and meet the stakeholders’ needs.

To explain: Whether or not the CEO of the company should be removed.