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NEW QUESTION 35
B is a quoted construction company. Its Board consists of qualified and experienced engineers Which TWO of the following statements are correct?
- A. The greater consistency arising from the composition of B’s Board will be beneficial
- B. B’s Board cannot be blamed for recruiting like-minded individuals
- C. There is a greater risk of B’s Board making strategic errors.
- D. The quality of Board decisions may decrease.
- E. Creating a nominations committee from B’s Board will resolve any issues
NEW QUESTION 36
Select the correct ethical principle that corresponds to each ethical dilemma described.
NEW QUESTION 37
S, a qualified and experienced professional accountant, has been appointed as a non-executive member of the Audit Committee of X X has recently obtained a listing on the second tier of a reputable Stock Exchange B, the Finance Director, is only worried about the maintenance of proper financial controls and is less concerned with operational controls S has asked A. the Production Director, to produce regular reports for the Audit Committee on production specification compliance and related issues A is concerned that this means S does not think he is doing his job properly and doubts his integrity In relation to this scenario, which of the following statements are valid?
Select ALL that apply.
- A. There is no benefit for X of A producing reports for the Audit Committee unless there are some members on the Audit Committee who have expertise in the production area
- B. B is correct to be more concerned about the maintenance of financial controls because they are inevitably more important than operational controls.
- C. The Audit Committee should plan for the receipt of regular reports on production specification compliance and related issues
- D. The appointment of an independent professionally qualified and experienced accountant will help strengthen the Audit Committee.
- E. If X is not seen to have an effective Audit Committee it will be exposed to increased market risk
- F. A is correct in believing that being asked to report to the Audit Committee in the manner described above suggests a lack of trust in his ability or integrity
NEW QUESTION 38