ExpertACCA · Question 11 · Internal Control
SECTION A - CASE 3: GLOBAL WATER INITIATIVE
SCENARIO:
Global Water Initiative (GWI) is an international NGO providing clean water solutions in developing nations. You are advising the board on corporate governance and internal audit. GWI currently does not have an internal audit department. The board consists of the CEO, the CFO, and two non-executive directors (NEDs), one of whom is the CEO's brother. GWI receives significant grant funding, which requires strict compliance with donor conditions. Recently, a whistleblower alleged that procurement contracts in a regional office were awarded to a company owned by the regional director.
QUESTION:
Based on best practice corporate governance principles, which TWO of the following represent deficiencies in GWI's current board structure?
SECTION A - CASE 3: GLOBAL WATER INITIATIVE
SCENARIO:
Global Water Initiative (GWI) is an international NGO providing clean water solutions in developing nations. You are advising the board on corporate governance and internal audit. GWI currently does not have an internal audit department. The board consists of the CEO, the CFO, and two non-executive directors (NEDs), one of whom is the CEO's brother. GWI receives significant grant funding, which requires strict compliance with donor conditions. Recently, a whistleblower alleged that procurement contracts in a regional office were awarded to a company owned by the regional director.
QUESTION:
Based on best practice corporate governance principles, which TWO of the following represent deficiencies in GWI's current board structure?
Answer options:
The board has an equal number of executive and non-executive directors.
One of the non-executive directors is the CEO's brother.
The board includes the Chief Financial Officer.
The NGO receives significant grant funding.
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