ACCA BT · Chapter 4 · Question 2 of 11
Which of the following is the most important role of independent non-executive directors on a company's board?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) To provide independent scrutiny and challenge of the executive directors' performance and decisions
Explanation
Independent non-executive directors bring objective judgement, monitor and challenge the executives, and typically sit on audit, remuneration and nomination committees. They are not involved in day-to-day management or in preparing the financial statements, and they cannot act as external auditors, which must be independent of the board.
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