Name: Anne Marielle P.

Uy

I. Identify in which video (Governance, Business Ethics, Risk Management or Internal Control)
the following words or phrases were mentioned. Briefly explain.
Ex.
Board of directors
Answer: Governance
Board of directors – responsible for the governance of the company
a. Regardless of your job
Answer: BUSINESS ETHICS
Regardless of your job – Knowing the importance of doing the right thing, even when it’s not
the easy thing to do because your ethics may be put to the test at any time by your co-worker,
customers, or even your employer
b. Professional perspective
Answer: BUSINESS ETHICS
Professional Perspective - Understanding your ethical expectations and then seeing your
professional perspective helps you to them is a starting point for ethical success at work
c. Accurate and reliable data entry
Answer: INTERNAL CONTROL
Accurate and reliable data entry -To promote reliable financial reporting
d. Fraud or loss of asset
Answer: INTERNAL CONTROL
Fraud or loss of asset -To promote effective and efficient operations
e. Control environment
Answer: INTERNAL CONTROL
Control environment -To promote integrity and ethics
f. Information and Communication
Answer: INTERNAL CONTROL
Information and Communication – There must be an effective channel to communicate
information readily, either internally or externally
g. Issue
Answer: RISK MANAGEMENT
Issue – A risk which has already occurred
h. Opportunities
Answer: RISK MANAGEMENT
Opportunities – Can also be called positive risks, they have positive impact on the objectives
that the company wants to achieve
i. Gain more rewards
Answer: RISK MANAGEMENT
Gain more rewards – The higher the risk, the higher the reward but that is not true always
j. Monitor and Control
Answer: RISK MANAGEMENT
Monitor and Control – Regularly review the identified risks and ensure that these are still
relevant
k. Responsive to Change
Answer: RISK MANAGEMENT
Responsive to Change – Needs to be flexible when faced with change
l. Separate Record Keeping and Cash handling
Answer: INTERNAL CONTROL
Separate Record Keeping and Cash handling – The separation of duties is one of several
steps to improve the internal control of an organization’s assets
m. Brainstorming
Answer: RISK MANAGEMENT
Brainstorming – The most common approach or tools used to identify the risks
n. Company’s objective and aims
Answer: GOVERNANCE
Company’s objective and aims – To set a clearly defined target. Plans can then be made to
achieve these targets and it also enables the companies to measure the progress towards to
its stated aims
o. Abide by the law
Answer: BUSINESS ETHICS
Abide by the law – Means showing your respect towards the company’s you are working with
p. Professional Perspective
Answer: BUSINESS ETHICS
Professional Perspective – Understanding your ethical expectations and then seeing your
professional perspective helps you to them is a starting point for ethical success at work
q. Divorce between ownership and control
Answer: GOVERNANCE
Divorce between ownership and control – Happens when the owners of the company do not
have the control to the day to day decisions made in the company.
r. Systematic and methodic process
Answer: RISK MANAGEMENT
Systematic and methodic process – Determining risks that could potentially prevent from
achieving its objectives must be done through a systematic way
s. Shareholders
Answer: GOVERNANCE
Shareholders – Their role in corporate governance is to appoint the directors and to satisfy
themselves that an appropriate governance structure is in place
t. Providing the leadership
Answer: GOVERNANCE
Providing the leadership – Its key role is to create a culture in the corporate which uses
effective governance to achieve its purpose
u. Non – executive directors
Answer: GOVERNANCE
Non – executive directors – They have no financial or personal ties to executives
v. Right over wrong
Answer: BUSINESS ETHICS
Right over wrong – The basic moral ground rules by which we live our lives
w. Conscience and Self – awareness
Answer: BUSINESS ETHICS
Conscience and Self – awareness -This is the ability to recognize ethical values and principles
x. Legal standards
Answer: BUSINESS ETHICS
Legal standards – Those standards that are set forth clearly defined by the employer
 y. Transfer to a third party
Answer: RISK MANAGEMENT
Transfer to a third party – To compensate the third party for bearing the risk, the entity will
provide the third party with periodic payments
z. Probability x Impact
Answer: RISK MANAGEMENT
Probability x Impact – The total amount of risk exposure is the probability of an unfortunate
event occurring, multiplied by the potential impact or damage incurred by the event

II. Select the letter of the best answer.

1. What is Corporate Governance?
a. It is created to oversee the audit of public companies
b. It is the system by which companies are directed and controlled
c. It provides flexible standards and best practices for companies
d. It enhances the reputation of markets as means of attracting capital
2. What is the main purpose of corporate governance?
a. To separate ownership and management control of organizations and the requirement for
increased accountability stakeholders’ group
b. To maximize shareholder value
c. To ensure the regulatory frameworks are adhered to
d. All of the above
3. The shareholders’ role in corporate governance is to appoint the directors and to satisfy
themselves that an appropriate governance structure is in place.
a. True b. False
4. The following are the key responsibilities of the Board of Directors except:
a. Setting the company’s objectives and aims
b. Providing the leadership to put them in effect
c. Reporting to shareholders on their stewardship of the business
d. None of the above
5. What is Ethics to do with?
a. Business
b. The wider community
c. Right and wrong
d. Nothing
6. Which of the following is an example of an area where business ethics apply?
a. Nowhere
b. Conduct of internal operations
c. In the personal life of the staff
d. None of the above
7. A reason to establish internal control is to
a. Have a basis for planning the audit
b. Encourage compliance with organizational objectives
c. Ensure the accuracy, reliability and timeliness of the operation
d. Provide reasonable assurance that the objectives of the organization are achieved.
8. Which of the following is a component of internal control?
a. Legal environment of the firm
b. Organizational structure
c. Control environment
 d. Business Ethics
9. Risk is expressed in terms of probability and impact
a. True b. False
10. Which is way to deal with risk?
a. Mitigate
b. Avoid
c. Transfer
d. Accept
e. All of the above

III. Essay
How these four topics (Governance, Business Ethics, Risk Management or Internal Control) are
related or connected to each other? Explain.
The Corporate Governance refers to the processes and structures by which the companies are directed
and controlled. The one who is responsible to control the governance of the company (BOD) must be
knowledgeable of setting the moral rules that govern how the companies operate, how the company
decisions are made and how people are treated. The Board of Director’s can now team up with the
management to identify the potential threats that may occur, to avoid or minimize their potential impact
to the company, for better decision making. And the Internal Control now ensure that decisions made by
the management is efficient and effective to the operations of the company.

Discuss the importance of each topic in Accounting.

Corporate Governance- Accounting practices are highly effective as an instrument of corporate
governance. Corporations can make advantageous and intelligent decisions about how to operate, when
to expand and how much to invest in a project when management has accurate accounting data.

Business Ethics – Objectivity and independence are important ethical values in the accounting
profession

Risk Management - Accountants need to be seen as risk experts who are outward-looking and provide
valuable insights to manage risk in a way that supports their organizations in responding to uncertainty
and achieving their objectives.

Internal Control – It gives a reliable financial reporting, effective and efficient operations and ensuring
the compliance must be covered accounting standards and management policy