What does "non-compliance" signify?

The term "non-compliance" signifies actions or behaviors that go against established laws or regulations, whether done intentionally or unintentionally. This encompasses a wide range of activities that fail to adhere to legal standards, industry regulations, or established guidelines within corporate governance and financial reporting.

Understanding non-compliance is crucial for organizations as it can lead to serious consequences such as legal penalties, financial losses, and reputational damage. The focus on both intentional and unintentional acts highlights the importance of awareness and education within organizations, as employees and management must be trained to recognize and uphold the necessary standards to avoid non-compliance.

The other options address various aspects of compliance or ethical considerations but do not define non-compliance itself. For instance, conformance with financial reporting requirements, adaptation of policies for improvement, and meeting ethical standards are all related to achieving compliance rather than defining a state of non-compliance.