Acca aa s21 Notes

independent
on 
appointment (e.g. not an employee within the last 5 years).
๏
At least 
half
the board should be non-executive directors (NEDs) who are considered 
independent (e.g. no close family ties with executive directors, no significant shareholdings, etc).
๏
NEDs should provide constructive challenge and strategic guidance and hold management to 
account. 
Composition, Succession and Evaluation
๏
Appointments to the board should be subject to a formal, rigorous and transparent procedure 
led by a nomination committee. A majority of the committee should be independent NEDs.
๏
The board and its committees should have a combination of skills, experience and knowledge.
The length of service of the board as a whole should be considered and membership regularly 
refreshed. The post of chair should not be held beyond 
nine years
.
๏
The board should undertake a formal and rigorous annual evaluation of its own performance 
and that of its committees and individual directors.
๏
All directors should be submitted for re-election annually.
September 2021 to June 2022 exams
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Audit, Risk and Internal Control
๏
The board should establish formal and transparent policies and procedures to ensure the 
independence and effectiveness of internal and external audit and the integrity of financial 
statements.
๏
The board should present a fair, balanced and understandable assessment of the company’s 
position and prospects. The financial statements should state whether the board considered 
the appropriateness of the going concern basis of accounting and identify any material 
uncertainties for at least 
12 months
from the date of approval of the financial statements.
๏
The board should establish procedures to manage risk, oversee internal controls and determine 
the nature and extent of the principal risks the company is willing to take to achieve its long-
term strategic objectives.
๏
The board should establish an