CFE – Fraud Prevention and Deterrence — Question 44

ABC, Inc. is a publicly traded, multi-national corporation. Which of the following statements is TRUE regarding the corporate governance requirements that ABC is subject to?

Answer options

• A. ABC must comply with specific listing standards for the stock exchange(s) on which it is listed
• B. ABC is required to comply with G20/OECD Principles of Corporate Governance
• C. ABC is subject to the Universal Corporate Governance Act because it is a publicly traded corporation
• D. ABC is not required to comply with any corporate governance requirements because it operates in multiple jurisdictions

Correct answer: B

Explanation

The correct answer is B because the G20/OECD Principles of Corporate Governance provide a framework that many publicly traded companies adhere to for accountability and transparency. Options A and C are incorrect as they do not universally apply to all corporations, while option D is false since operating in multiple jurisdictions does not exempt a company from governance requirements.