Board and Board Committees: Audit Committee, Nomination & Remuneration, CSR Committee; Roles and Responsibilities Questions

Question 1

State one role of the Board of Directors.

Accepted Answer

One role of the board is providing **strategic direction** and ensuring **oversight** of management (any one) (concept).

Question 2

Audit Committee mainly focuses on financial reporting and internal controls. (True/False)

Accepted Answer

True. Audit Committee oversees **financial reporting**, audits and **internal controls** (concept).

Question 3

Define a board committee (one line).

Accepted Answer

A **board committee** is a smaller group of directors formed to provide specialized oversight and detailed review in specific areas (concept).

Question 4

NRC stands for Nomination & Remuneration Committee. (True/False)

Accepted Answer

True. **NRC** deals with nominations/appointments and remuneration policy (concept).

Question 5

State one function of the CSR Committee.

Accepted Answer

One function is to recommend CSR projects and monitor **CSR policy** implementation and reporting (any one) (overview).

Question 6

Board committees reduce conflicts of interest and improve accountability. (True/False)

Accepted Answer

True. Committees strengthen **independent oversight** and improve **accountability** through detailed review and follow-up (concept).

Question 7

Explain any three responsibilities of the Board of Directors (exam points).

Accepted Answer

Any three responsibilities (concept):

- provide strategic direction and approve major policies
- oversee management performance and compliance
- ensure financial integrity and reliable reporting
- monitor risk and internal controls
- promote ethical conduct and stakeholder protection (overview)

Write any three points.

Question 8

Why are board committees required? Write any three reasons (use a table).

Accepted Answer

Committees are required because (any three) (concept):

| Reason | How it helps |
|---|---|
| specialization | detailed review in audit/HR/CSR |
| **independent oversight** | reduces conflicts of interest |
| faster focused decisions | improves efficiency |
| compliance support | meets governance expectations (overview) |

Write any three points.

Question 9

Write key functions of Audit Committee (any three points).

Accepted Answer

Any three functions (concept):

- review financial statements and accounting policies
- oversee **internal controls** and internal audit
- recommend appointment/remuneration of external auditors (overview)
- monitor audit findings and management responses
- investigate financial irregularities and compliance issues (overview)

Write any three points.

Question 10

Explain key functions of NRC (Nomination & Remuneration Committee) (any three points).

Accepted Answer

Any three functions (concept):

- identify and recommend candidates for board/senior management
- evaluate board/director performance (overview)
- design **remuneration policy** aligned with performance and ethics
- ensure incentives do not encourage unethical behavior (overview)

Write any three points.

Question 11

Explain key functions of CSR Committee (any three points) using bullet points.

Accepted Answer

Any three functions (overview):

- formulate/recommend **CSR policy** and CSR projects
- recommend CSR expenditure and budgets
- monitor implementation and outcomes of CSR programs
- ensure CSR reporting/disclosures in annual reports (concept)

Write any three points.

Question 12

Differentiate Audit Committee and NRC (any three points) using a table.

Accepted Answer

Differences (concept):

| Basis | **Audit Committee** | **NRC** |
|---|---|---|
| Focus | reporting, audit, controls | nominations and remuneration |
| Key risk | misreporting/fraud | conflicts in appointments/pay |
| Outputs | audit oversight, control review | remuneration policy, evaluations |

Any three differences are sufficient.

Question 13

Explain board committees (Audit, NRC, CSR): purpose and key outputs (exam-style) using a table.

Accepted Answer

### Purpose
Board committees provide specialist oversight and improve **accountability** and **transparency** (concept).

### Comparison table

| Committee | Purpose | Key output (concept) |
|---|---|---|
| **Audit Committee** | reporting, audit, controls | reliable financial reporting |
| **NRC** | nominations, evaluation, pay | fair appointment + remuneration policy |
| **CSR Committee** | CSR planning and monitoring | CSR policy and CSR reporting |

Conclusion: Committees support better oversight, but the board remains ultimately responsible (concept).

Question 14

How do board committees strengthen corporate governance? Explain with points and a small flowchart (exam-style).

Accepted Answer

### How committees strengthen governance (any five) (concept)
- improve **transparency** via better reporting oversight (Audit Committee)
- increase **accountability** through documented reviews and follow-ups
- reduce conflicts of interest in appointments and pay (NRC)
- strengthen controls and risk monitoring (Audit/Risk committees)
- improve stakeholder trust via CSR planning and reporting (CSR Committee) (overview)

Flowchart:

```text
Board -> Committees -> Detailed oversight/policies -> Controls & disclosures -> Trust & accountability
```

Question 15

Explain the Audit Committee’s role in ensuring financial integrity and fraud prevention (exam-style) using a table.

Accepted Answer

### Audit Committee’s role (concept)
Audit Committee supports the board by strengthening financial integrity and preventing/detecting fraud.

| Area | What the committee does (concept) |
|---|---|
| Financial reporting | reviews statements and key accounting policies |
| Internal controls | evaluates control effectiveness and weaknesses |
| Internal audit | reviews findings and ensures corrective actions |
| External audit | recommends auditors; reviews audit reports |
| Compliance | flags irregularities and ensures follow-up |

Conclusion: Strong audit oversight improves transparency and investor confidence (concept).

Board and Board Committees: Audit Committee, Nomination & Remuneration, CSR Committee; Roles and Responsibilities

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