ACCA Corporate Governance and Ethics 4

Question 1

Which of the following best describes 'integrated reporting' as promoted by the IIRC?

Accepted Answer

A report that connects financial performance with the six capitals to show how value is created over time

Answer

Integrated reporting, under the IIRC framework, shows how an organization uses and affects the six capitals (financial, manufactured, intellectual, human, social/relationship, natural) to create value over time.

Question 2

A whistleblower policy is MOST important for which purpose in a corporate governance context?

Accepted Answer

Providing a safe channel for employees to report suspected misconduct without fear of retaliation

Answer

A whistleblower policy protects employees who report wrongdoing from retaliation, encouraging early detection of fraud or misconduct.

Question 3

In the context of board effectiveness, what does 'board diversity' primarily seek to improve?

Accepted Answer

The range of perspectives, skills, and experiences to enhance decision-making quality

Answer

Board diversity aims to broaden the range of perspectives and skills, reducing groupthink and improving the quality of strategic and risk decisions.

Question 4

Which statement about non-executive directors (NEDs) is CORRECT under good governance practice?

Accepted Answer

NEDs provide independent oversight and constructive challenge to executive management

Answer

Non-executive directors bring independent judgment, challenge management assumptions, and provide oversight without involvement in daily operations.

Question 5

The OECD Principles of Corporate Governance emphasize which of the following as a core pillar?

Accepted Answer

The equitable treatment of shareholders, including minority shareholders

Answer

The OECD Principles stress equitable treatment of all shareholders, including minority and foreign shareholders, protecting them from abusive self-dealing.

ACCA - Association of Chartered Certified Accountants Practice Test

ACCA - Association of Chartered Certified Accountants Practice Test

ACCA Corporate Governance and Ethics 4