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CIMAPRA19-P03-1 Exam - Topic 3 Question 76 Discussion

Which of the following statements concerning the role ofa non-executivedirector (NED) is correct?
D) NEDs have a key role in removing executive directors.
A) Individual NEDs should be on at least five boards if possible so as to give them wide experience.
B) NEDs are not responsible for determiningexecutive directors' remuneration.
C) NEDs should satisfy themselves on the integrity of financial information and should develop the control systems to ensure that integrity is maintained.

CIMAPRA19-P03-1 Exam - Topic 3 Question 76 Discussion

Actual exam question for CIMA's CIMAPRA19-P03-1 exam
Question #: 76
Topic #: 3
[All CIMAPRA19-P03-1 Questions]

Which of the following statements concerning the role ofa non-executivedirector (NED) is correct?

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Suggested Answer: D

by Lajuana at Nov 01, 2025, 05:31 PM

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Leonida
3 months ago
B is misleading. NEDs do have a say in remuneration discussions.
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Katheryn
4 months ago
A seems unrealistic. Five boards? Too much for one person!
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Antonio
4 months ago
Agreed, C makes sense. They must develop control systems.
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Yolando
4 months ago
I think C is the best answer. NEDs need to ensure financial integrity.
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Sylvie
5 months ago
I thought NEDs were supposed to focus on governance, not just financials.
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Delmy
5 months ago
B is misleading, NEDs do have a say in remuneration discussions.
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Ellsworth
5 months ago
Wait, can NEDs really remove executive directors? That sounds extreme.
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Rasheeda
5 months ago
A) Individual NEDs should be on at least five boards if possible so as to give them wide experience. That's a lot of meetings to attend!
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Maddie
5 months ago
D) NEDs have a key role in removing executive directors. Sounds like a fun job, where do I sign up?
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Jacki
5 months ago
B) NEDs are not responsible for determining executive directors' remuneration.
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Gilma
6 months ago
C) NEDs should satisfy themselves on the integrity of financial information and should develop the control systems to ensure that integrity is maintained.
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Whitney
6 months ago
D sounds familiar, but I thought NEDs mainly provided oversight rather than directly removing executive directors.
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Katina
6 months ago
I’m a bit unsure about C. I know NEDs oversee financial integrity, but do they really develop control systems?
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Bette
6 months ago
NEDs really shouldn't be on that many boards, it's a conflict of interest.
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Frank
6 months ago
I think B is correct because NEDs typically advise on remuneration but don’t decide it directly.
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Jerrod
7 months ago
Totally agree, option C is spot on! Integrity is crucial.
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Dominga
7 months ago
C) NEDs should satisfy themselves on the integrity of financial information and should develop the control systems to ensure that integrity is maintained. Gotta keep those executives in check!
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Marylou
7 months ago
I remember discussing how NEDs shouldn't be overloaded with too many boards, so A seems off to me.
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Annabelle
7 months ago
I think option C is the correct answer here. NEDs should ensure the integrity of financial information and the control systems that maintain that integrity. That seems like a core part of their oversight role.
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Hannah
8 months ago
I'm a bit confused by option A. Requiring NEDs to be on at least five boards doesn't seem like the best practice. I'll need to think through the reasoning behind each statement to determine the most accurate one.
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Pauline
8 months ago
Option B seems straightforward - NEDs are not responsible for determining executive directors' remuneration. That makes sense to me based on the separation of duties. I'll focus on understanding the other options as well.
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Myra
8 months ago
Hmm, this is a tricky one. I'm leaning towards option D - NEDs do play a key role in removing executive directors if necessary. But I'll need to double-check the details to be confident in my answer.
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Tomas
8 months ago
I'm not entirely sure about the role of non-executive directors, but I think option C sounds like the most reasonable approach. We'll need to carefully review the information and consider the implications of each statement.
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Shawnta
3 months ago
I’m with you all on C. It just makes sense.
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Ty
3 months ago
True, but I think C covers the essential oversight role.
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Jesusita
3 months ago
But what about option D? Removing execs is a big deal.
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Ruthann
3 months ago
Yeah, ensuring financial integrity is crucial.
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Daryl
6 months ago
I agree, option C seems the most logical.
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