ACCA Corporate Governance and Ethics 3

Question 1

The Sarbanes-Oxley Act (SOX) Section 302 requires:

Accepted Answer

CEOs and CFOs to personally certify the accuracy of financial reports

Answer

SOX Section 302 requires the CEO and CFO to personally certify the accuracy and completeness of financial reports filed with the SEC.

Question 2

In Kohlberg's model of moral development, an individual operating at the 'post-conventional' level makes ethical decisions based on:

Accepted Answer

Universal ethical principles and personal conscience

Answer

At the post-conventional level, moral reasoning is guided by universal ethical principles that may even supersede established laws.

Question 3

Which governance model is characterized by a two-tier board structure with a supervisory board and a management board?

Accepted Answer

German/Continental European model

Answer

The German/Continental European model uses a two-tier structure: a supervisory board that oversees the management board responsible for day-to-day operations.

Question 4

A director is said to have a 'fiduciary duty' to a company. This duty primarily means the director must:

Accepted Answer

Act in good faith in the best interests of the company

Answer

A fiduciary duty requires directors to act honestly, in good faith, and in the best interests of the company as a whole.

Question 5

Which of the following is a PRIMARY role of the nomination committee?

Accepted Answer

Identifying and recommending candidates for board appointments

Answer

The nomination committee leads the process for board appointments, ensuring the board has the right balance of skills, experience, and diversity.

ACCA - Association of Chartered Certified Accountants Practice Test

ACCA - Association of Chartered Certified Accountants Practice Test

ACCA Corporate Governance and Ethics 3