Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 195

Which of the following statements is true with regard to governance?

Answer options

• A. Governance activities support the organization's risk management framework.
• B. Cultural risk factors can impede the operation of governance activities.
• C. Internal control within an organization is supported by governance activities.
• D. Governance activities are uniform for organizations in the same industry.

Correct answer: A

Explanation

The correct answer is A because governance activities are designed to align with and enhance an organization's risk management framework. Options B and C, while true, do not directly define a fundamental aspect of governance. Option D is incorrect as governance activities can vary significantly between organizations in the same industry due to differing structures and cultures.