Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 68

Which of the following is the most effective way any organization can ensure proper governance over its internal controls?

Answer options

• A. By adopting the best practices of similar organizations in the industry.
• B. By adjusting their internal control framework as business practices evolve.
• C. By introducing the universally accepted COSO internal control framework.
• D. By encouraging the internal audit activity to provide training on internal controls.

Correct answer: C

Explanation

The COSO internal control framework is a comprehensive model recognized worldwide for effective internal control systems, making it the most effective choice. While adopting best practices (A), adjusting frameworks (B), and providing training (D) are beneficial, they do not provide the same structured and recognized approach that the COSO framework offers.