ITPEC IP April 2019 Question 76
ITPEC IP April 2019 — Question 76 of 100
Appointing outside directors strengthens independent monitoring and supervision of management decisions. Directors who are not involved in daily company management can bring external expertise and challenge executives with fewer internal conflicts of interest.
Answer (c)
Why not others:
- monitoring entry to an office does not evaluate management decisions
- private investigations are not a normal governance structure for board oversight
- employing law graduates in internal audit does not by itself create independent board supervision
Key rule: Corporate governance is strengthened by oversight bodies with suitable authority and independence from the executives they monitor.
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