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ACCA Strategic Professional · Strategic Business Leader · Governance scope and approaches

A national health agency funded by taxpayers is criticised because its board approved a costly IT programme without publishing the reasons, and citizens cannot see how outcomes are measured. Which governance principle has chiefly been breached?

Transparency and accountability to the public have been breached. A taxpayer-funded agency must explain its major decisions and report measurable outcomes to citizens. Hiding the reasons for the IT spend and the outcome measures prevents the public from holding the board to account.

  1. ATransparency and accountability to the publicCorrect
  2. BMaximising shareholder returns
  3. CSeparation of the roles of chair and chief executive
  4. DRotation of external auditors

Explanation

Public sector bodies spend public money and must be open about decisions and answerable for results. Here the reasons and outcome measures are hidden, so transparency and accountability are breached. Shareholder return is irrelevant to a taxpayer-funded agency, and the other options are not the issue described.

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