Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 186

Which of the following best demonstrates the board of directors’ governance over internal control?

Answer options

• A. The board bears direct responsibility for developing and implementing the internal control system.
• B. The majority of board members are experienced and qualified members of the organization’s executive management team.
• C. The board may be assisted by an audit committee, chaired by the chief audit executive.
• D. The board is responsible for succession planning for the CEO and other key members of the executive management team.

Correct answer: A

Explanation

The correct answer is A because it emphasizes the board's direct accountability in establishing and executing the internal control system, which is a fundamental aspect of governance. Options B, C, and D, while relevant to board responsibilities, do not specifically address governance over internal control.