30 Questions
What is the year of the KING I governance development in South Africa?
1994
What is the recommended approach for all organisations in KING III?
Comply or explain
What is the minimum requirement for the Board of Directors in terms of executive officers?
The CEO and one other executive officer
What is the characteristic of the majority of non-executive directors in the Board of Directors?
They should be independent
What is the role of the Board of Directors according to Principle 7?
To discharge its governance roles and responsibilities
What is the year of the KING IV governance development in South Africa?
2016
What is the primary reason for the increased need for improved governance?
Frequency and severity of corporate scandals
Who is typically involved in the day-to-day running of an organisation and receives a salary from the organisation?
Executive Directors
What is the definition of governance according to Sir Cadbury?
The way in which organisations are directed and controlled
What is a characteristic of an Independent Non-Executive Director?
Has no interest or prior involvement in the organisation
Who should not act as the Chairperson of the Board of Directors simultaneously?
CEO of the organisation
What is the purpose of the governing body according to the King IV Report of Corporate Governance?
To exercise ethical and effective leadership towards the achievement of governance outcomes
What is the relationship between stakeholders and an organisation?
Stakeholders are impacted by the organisation or have an interest in the organisation
When can a retired CEO become the Chair of the Board of Directors?
After three complete years have passed from the end of the CEO's tenure
What is a characteristic of a Non-Executive Director?
Not form part of the day-to-day running of an organisation
What are the dimensions of governance?
Legal, cultural, ownership, and other structural dimensions
What is a restriction on an Independent Non-Executive Director?
Cannot act as a senior legal advisor of the company
What is the desired outcome of corporate governance according to the King IV Report?
Ethical culture, good performance, effective control, and legitimacy
What is the primary role of the Audit Committee in relation to external auditors?
To assist with the selection and discharge of an external auditor
How frequently should the Audit Committee meet, according to governance structures?
At least three to four times a year
What is a key requirement for the composition of the Audit Committee?
At least one member should be a financial expert
What is the Audit Committee responsible for evaluating regularly?
The audit committee's own performance
What is the role of the Audit Committee in relation to internal auditors?
To approve the internal audit charter
What is the Audit Committee responsible for reviewing and approving in relation to internal auditors?
All of the above
What is the primary role of assurance providers in the governance sphere?
To assess the effectiveness of governance structures
What is the dual role of Internal Audit Function (IAF) in governance?
Forming part of the governance structure and performing assurance and advisory services
What is the focus of External Audit (EA) when it comes to governance?
Considering governance issues only in certain phases
What is the term used to describe the collaboration between internal and external assurance providers?
Combined Assurance
What is the role of actuaries in the governance sphere?
To provide assurance services as part of the governance sphere
What is the primary focus of assurance providers when performing governance assessments?
The relationship between governance, risk, and control
Test your understanding of corporate governance, its definition, dimensions, and differences between countries. Learn about the importance of good governance and its impact on organizations.
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