Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 220

Which of the following statements regarding organizational governance is not correct?

Answer options

• A. An effective internal audit function is one of the four cornerstones of good governance.
• B. Those performing governance activities are accountable to the customer.
• C. Accountability is one of the key elements of organizational governance.
• D. Governance principles and the need for an internal audit function are applicable to governmental and not-for-profit activities.

Correct answer: B

Explanation

The correct answer is B because those engaged in governance activities are accountable to stakeholders, not directly to the customer. Options A and C are true statements regarding governance principles, and option D correctly identifies that governance principles apply to governmental and not-for-profit activities as well.