Corporate Governance Overview

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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?

They should be independent (C) Signup and view all the answers

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

To discharge its governance roles and responsibilities (B) Signup and view all the answers

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

2016 (B) Signup and view all the answers

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

Frequency and severity of corporate scandals (A) 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?

Executive Directors (C) Signup and view all the answers

What is the definition of governance according to Sir Cadbury?

The way in which organisations are directed and controlled (B) Signup and view all the answers

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

Has no interest or prior involvement in the organisation (C) Signup and view all the answers

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

CEO of the organisation (A) Signup and view all the answers

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 (A) Signup and view all the answers

What is the relationship between stakeholders and an organisation?

Stakeholders are impacted by the organisation or have an interest in the organisation (D) Signup and view all the answers

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 (B) Signup and view all the answers

What is a characteristic of a Non-Executive Director?

Not form part of the day-to-day running of an organisation (D) Signup and view all the answers

What are the dimensions of governance?

Legal, cultural, ownership, and other structural dimensions (D) Signup and view all the answers

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

Cannot act as a senior legal advisor of the company (C) Signup and view all the answers

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

Ethical culture, good performance, effective control, and legitimacy (D) Signup and view all the answers

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 (C) Signup and view all the answers

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

At least three to four times a year (A) Signup and view all the answers

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

At least one member should be a financial expert (C) Signup and view all the answers

What is the Audit Committee responsible for evaluating regularly?

The audit committee's own performance (A) Signup and view all the answers

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

To approve the internal audit charter (D) Signup and view all the answers

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

All of the above (D) Signup and view all the answers

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

To assess the effectiveness of governance structures (D) Signup and view all the answers

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

Forming part of the governance structure and performing assurance and advisory services (D) Signup and view all the answers

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

Considering governance issues only in certain phases (D) Signup and view all the answers

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

Combined Assurance (D) Signup and view all the answers

What is the role of actuaries in the governance sphere?

To provide assurance services as part of the governance sphere (C) Signup and view all the answers

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

The relationship between governance, risk, and control (B) Signup and view all the answers