PracticeVideosBlogFlashcards
All Practice Exams

Free Practice Questions for ICA Corporate Governance Cert

Exam-style questions and explanations by OpenExamPrep.

✓ No registration✓ No credit card
100+ Questions
100% Free

Loading practice questions...

Same family resources

Explore More ICA Specialist Compliance Certificates (UK)

Continue into nearby exams from the same family. Each card keeps practice questions, study guides, flashcards, videos, and articles in one place.

ICA Specialist Certificate in Trade Based Money Laundering (International Compliance Association, UK)

Practice Questions112 questions

ICA Certificate in Anti Money Laundering (International Compliance Association, UK)

Practice Questions100 questions

ICA Certificate in Compliance (International Compliance Association, UK)

Practice Questions100 questions

ICA Certificate in Financial Crime Prevention (International Compliance Association, UK)

Practice Questions100 questions

ICA Certificate in KYC and CDD (International Compliance Association, UK)

Practice Questions100 questions

ICA Certificate in Managing Sanctions Risk (International Compliance Association, UK)

Practice Questions100 questions

Sample ICA Corporate Governance Cert Practice Questions

Try these sample questions to review concepts for the ICA Corporate Governance Cert exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under the UK Corporate Governance Code, what is the primary role of the Chairman of the Board of Directors?
A.Leading the board and ensuring its effectiveness on all aspects of its role
B.Managing the day-to-day business operations of the company
C.Conducting independent annual audits of financial statements
D.Approving all individual routine credit transactions above £1 million
Explanation: The UK Corporate Governance Code specifies that the Chair is responsible for leadership of the board and ensuring its overall effectiveness, maintaining a clear separation from the Chief Executive Officer who manages the executive business.
2Which core principle underpins Section 172 of the UK Companies Act 2006 regarding directors' duties?
A.A director must act in good faith to promote the success of the company for the benefit of its members as a whole
B.A director must maximize short-term quarterly dividend payouts regardless of long-term solvency
C.A director must report directly to external regulatory bodies before communicating with shareholders
D.A director must hold at least 5% of voting shares in the company to sit on the board
Explanation: Section 172 of the Companies Act 2006 requires a director to act in good faith to promote the success of the company for the benefit of its members as a whole, while having regard to long-term consequences, employees, suppliers, customers, and environmental impact.
3In the 'Three Lines of Defense' model for governance and risk management, which functions constitute the second line?
A.Risk management and compliance functions that oversee and monitor risk-taking activities
B.Operational management and front-line business units executing daily business tasks
C.Internal audit providing independent objective assurance to the board
D.External statutory auditors and regulatory enforcement authorities
Explanation: In the classic Three Lines Model, operational management is the first line, risk and compliance oversight functions represent the second line, and internal audit provides independent third-line assurance.
4Under the Senior Managers and Certification Regime (SM&CR) enforced by the FCA and PRA, what is the primary purpose of a 'Statement of Responsibilities'?
A.To clearly outline the specific areas of accountability assigned to each Senior Management Function (SMF) holder
B.To grant Senior Managers complete immunity from individual regulatory prosecution
C.To replace the requirement for annual external board performance evaluations
D.To authorize executive directors to alter statutory financial reporting deadlines without approval
Explanation: Under SM&CR, every Senior Manager must have a Statement of Responsibilities setting out what they are personally accountable for, ensuring regulatory clarity and individual accountability.
5What is the recommended maximum tenure for a Non-Executive Director (NED) to remain considered independent under the UK Corporate Governance Code?
A.9 years from the date of first appointment
B.3 years from the date of first appointment
C.15 years from the date of first appointment
D.There is no specified limit if shareholders vote annually
Explanation: The UK Corporate Governance Code states that serving on the board for more than nine years from the date of first appointment can compromise a Non-Executive Director's independence.
6What key structural safeguard is required when a UK listed company combines the roles of Chairman and Chief Executive Officer?
A.The roles should not be held by the same individual; if combined, major shareholders must be consulted and a clear rationale published
B.The combination is strictly illegal under the UK Companies Act 2006
C.The company must appoint a second external audit firm to perform monthly reviews
D.The board must delegate all voting power exclusively to executive directors
Explanation: The UK Corporate Governance Code stipulates that the roles of Chair and CEO should not be exercised by the same individual. Combining them requires explicit shareholder explanation under the 'comply or explain' framework.
7Which committee of the board must consist entirely of independent Non-Executive Directors in UK listed companies?
A.Audit Committee
B.Executive Committee
C.Credit Risk Operations Committee
D.Strategy and Innovation Committee
Explanation: Under the UK Corporate Governance Code, the Audit Committee should comprise independent non-executive directors (at least three in larger companies, or two in smaller ones), with at least one member having recent and relevant financial experience.
8How does the 'Comply or Explain' principle operate in UK corporate governance reporting?
A.Companies must comply with Code provisions or provide a thoughtful, clear explanation for any non-compliance to shareholders
B.Companies must comply with all provisions without exception under penalty of immediate criminal prosecution
C.Companies can ignore all provisions provided the CEO signs a annual waiver
D.Companies are required to explain provisions only if requested by financial journalists
Explanation: 'Comply or Explain' is the hallmark of UK corporate governance flexibility. Companies must either follow the Code provisions or explain to shareholders why alternative governance arrangements are appropriate for their circumstances.
9What is the primary role of the Senior Independent Director (SID) on a UK corporate board?
A.To provide a sounding board for the Chair, act as an intermediary for other directors, and lead the appraisal of the Chair's performance
B.To manage internal disciplinary hearings for junior employees
C.To prepare the quarterly management accounting figures
D.To sign off on individual IT software procurement licenses
Explanation: The Senior Independent Director (SID) serves as an intermediary for shareholders and directors, supports the Chair, and leads the annual evaluation of the Chair's performance.
10Under the Wates Corporate Governance Principles for Large Private Companies, what is emphasized regarding corporate culture?
A.The board should embody and promote a desired culture that aligns with company purpose, strategy, and values
B.Private companies are exempt from considering corporate culture
C.Culture should be defined solely by external recruitment agencies
D.Culture is relevant only when a private company initiates an initial public offering (IPO)
Explanation: Principle 2 of the Wates Principles states that an effective board embeds and promotes a corporate culture that aligns with the company’s purpose, strategy, and values.

About the ICA Corporate Governance Cert Exam

The ICA Specialist Certificate in Corporate Governance is a professional qualification providing a thorough understanding of corporate governance principles, board structures, internal controls, culture, and digital governance risks.

Exam sponsor: International Compliance Association (ICA). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Questions

25 questions

Time Limit

1 hour

Passing Score

70%

Exam / Certification Fees

£765

Exam sponsor website

Reported exam pass rate: Not published by ICA.. The ICA does not publish pass rates for the Specialist Certificate assessments. The pass mark is 70% (18 of 25 questions correct). Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

15%

Function of Enterprise Governance

Enterprise governance overview, purpose of the organization, and governance of regulated enterprises.

25%

Board-Level Governance

Purpose and duties of the board, leadership, decision-making frameworks, and board committee structures.

20%

Culture and Conflict Management

Impact of organizational structure, board tone at the top, managing conflicts of interest, and whistleblowing.

15%

Organisational Structure and Strategy

Corporate hierarchy, delegation of authority, policy frameworks, reporting, and communication strategies.

15%

Internal Control Functions

Role of internal control functions, compliance authority, internal audit, and enterprise risk management.

10%

Digital Influence

Impact of digital revolution on governance, cybersecurity oversight, and emerging digital governance trends.

Preparing for the ICA Corporate Governance Cert Exam

What You Need to Know

  • Passing score: 70%
  • Exam length: 25 questions
  • Time limit: 1 hour
  • Exam / certification fees: £765 Official sources

Using Our Practice Resources

  • Work through all 100 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

ICA Corporate Governance Cert: Suggested Study Strategy

1Master the key provisions of the UK Corporate Governance Code and Section 172 of the Companies Act 2006.
2Understand the Three Lines of Defense model and how compliance and internal audit function independently.
3Focus on board committee independence requirements for Audit, Remuneration, and Nomination committees.

Frequently Asked Questions

How many questions are on the ICA Specialist Certificate in Corporate Governance exam?

The official ICA Specialist Certificate in Corporate Governance assessment contains 25 multiple-choice questions.

What is the pass mark for the ICA Corporate Governance Certificate?

The pass mark is 70%, meaning you must correctly answer at least 18 out of 25 questions.

How long is the ICA Corporate Governance examination?

Candidates are given 1 hour (60 minutes) to complete the online assessment.

What topics are covered on the ICA Corporate Governance exam?

The syllabus covers six areas: Function of Enterprise Governance, Board-Level Governance, Culture and Conflict Management, Organisational Structure and Strategy, Internal Control Functions, and Digital Influence.

How much does the ICA Specialist Certificate in Corporate Governance cost?

The course fee is £765 plus a separate 12-month ICA membership fee of £195, which includes online course access and one examination entry.