ACCA FA · Chapter 1 · Question 8 of 10
Within a system of corporate governance, which of the following is a key role of non-executive directors?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) To provide independent oversight and constructive challenge of the executive directors
Explanation
Non-executive directors are not involved in daily management. Their value comes from independence: they monitor and challenge executive management, and often sit on audit, remuneration and nomination committees. The external audit must be performed by an independent auditor outside the board, and day-to-day management and reporting are executive functions.
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