Corporate Governance Overview
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Questions and Answers

What is the year of the KING I governance development in South Africa?

  • 1998
  • 2000
  • 1994 (correct)
  • 1990

    • What is the recommended approach for all organisations in KING III?

  • Apply or explain
  • Comply or explain (correct)
  • Apply and ignore
  • Comply and explain

    • What is the minimum requirement for the Board of Directors in terms of executive officers?

  • At least two executive officers
  • The CEO and one other executive officer (correct)
  • Only the CEO should be appointed
  • No executive officers should be appointed

    • What is the characteristic of the majority of non-executive directors in the Board of Directors?

    <p>They should be independent</p> Signup and view all the answers

    What is the role of the Board of Directors according to Principle 7?

    <p>To discharge its governance roles and responsibilities</p> Signup and view all the answers

    What is the year of the KING IV governance development in South Africa?

    <p>2016</p> Signup and view all the answers

    What is the primary reason for the increased need for improved governance?

    <p>Frequency and severity of corporate scandals</p> Signup and view all the answers

    Who is typically involved in the day-to-day running of an organisation and receives a salary from the organisation?

    <p>Executive Directors</p> Signup and view all the answers

    What is the definition of governance according to Sir Cadbury?

    <p>The way in which organisations are directed and controlled</p> Signup and view all the answers

    What is a characteristic of an Independent Non-Executive Director?

    <p>Has no interest or prior involvement in the organisation</p> Signup and view all the answers

    Who should not act as the Chairperson of the Board of Directors simultaneously?

    <p>CEO of the organisation</p> Signup and view all the answers

    What is the purpose of the governing body according to the King IV Report of Corporate Governance?

    <p>To exercise ethical and effective leadership towards the achievement of governance outcomes</p> Signup and view all the answers

    What is the relationship between stakeholders and an organisation?

    <p>Stakeholders are impacted by the organisation or have an interest in the organisation</p> Signup and view all the answers

    When can a retired CEO become the Chair of the Board of Directors?

    <p>After three complete years have passed from the end of the CEO's tenure</p> Signup and view all the answers

    What is a characteristic of a Non-Executive Director?

    <p>Not form part of the day-to-day running of an organisation</p> Signup and view all the answers

    What are the dimensions of governance?

    <p>Legal, cultural, ownership, and other structural dimensions</p> Signup and view all the answers

    What is a restriction on an Independent Non-Executive Director?

    <p>Cannot act as a senior legal advisor of the company</p> Signup and view all the answers

    What is the desired outcome of corporate governance according to the King IV Report?

    <p>Ethical culture, good performance, effective control, and legitimacy</p> Signup and view all the answers

    What is the primary role of the Audit Committee in relation to external auditors?

    <p>To assist with the selection and discharge of an external auditor</p> Signup and view all the answers

    How frequently should the Audit Committee meet, according to governance structures?

    <p>At least three to four times a year</p> Signup and view all the answers

    What is a key requirement for the composition of the Audit Committee?

    <p>At least one member should be a financial expert</p> Signup and view all the answers

    What is the Audit Committee responsible for evaluating regularly?

    <p>The audit committee's own performance</p> Signup and view all the answers

    What is the role of the Audit Committee in relation to internal auditors?

    <p>To approve the internal audit charter</p> Signup and view all the answers

    What is the Audit Committee responsible for reviewing and approving in relation to internal auditors?

    <p>All of the above</p> Signup and view all the answers

    What is the primary role of assurance providers in the governance sphere?

    <p>To assess the effectiveness of governance structures</p> Signup and view all the answers

    What is the dual role of Internal Audit Function (IAF) in governance?

    <p>Forming part of the governance structure and performing assurance and advisory services</p> Signup and view all the answers

    What is the focus of External Audit (EA) when it comes to governance?

    <p>Considering governance issues only in certain phases</p> Signup and view all the answers

    What is the term used to describe the collaboration between internal and external assurance providers?

    <p>Combined Assurance</p> Signup and view all the answers

    What is the role of actuaries in the governance sphere?

    <p>To provide assurance services as part of the governance sphere</p> Signup and view all the answers

    What is the primary focus of assurance providers when performing governance assessments?

    <p>The relationship between governance, risk, and control</p> Signup and view all the answers

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