ACCA ACCA Corporate Governance

Question 1

Which ACCA paper primarily covers corporate governance and its application to listed companies?

Accepted Answer

P1 - Governance, Risk and Ethics

Answer

P2 - Corporate Reporting

Answer

F7 - Financial Reporting

Answer

F8 - Audit and Assurance

Question 2

In the UK Corporate Governance Code, what principle governs the relationship between a company's board and its shareholders?

Accepted Answer

Engagement

Answer

Accountability and audit

Answer

Leadership

Answer

Remuneration

Question 3

Which of the following best describes a 'unitary board' structure in corporate governance?

Accepted Answer

Executive and non-executive directors on a single board

Answer

Separate supervisory and management boards

Answer

A board composed entirely of independent directors

Answer

A board chaired by the CEO

Question 4

According to the OECD Principles of Corporate Governance, which stakeholder group is primarily protected by governance frameworks?

Accepted Answer

Shareholders and stakeholders broadly

Answer

Creditors only

Answer

Management only

Answer

Government regulators

Question 5

What is the primary role of an audit committee within a company's corporate governance structure?

Accepted Answer

Overseeing financial reporting and internal controls

Answer

Setting executive pay

Answer

Approving major capital expenditures

Answer

Managing investor relations

Question 6

Under the 'comply or explain' regime in corporate governance, what are companies required to do?

Accepted Answer

Either follow code provisions or explain why they have not

Answer

Comply with all governance code provisions without exception

Answer

Explain all governance decisions to regulators annually

Answer

Comply with rules only if they are a listed company