Which of the following is a significant governance issue that should be reported by the chief audit executive to the board?

The correct answer is A. There is no risk management and control process and risk management is solely tie responsibility. A significant governance issue that must be reported to the board is the absence of a formal risk management and control process, with risk management being solely the responsibility of operational managers. Effective governance requires a structured risk management framework…

Managing the Internal Audit Activity

Question

Options

AThere is no risk management and control process and risk management is solely tie responsibility
BThe organisation's code of conduct is distributed to employees each year however employees are
CReconciliation of planned board meeting agendas to meeting minutes finds that one meeting was
DThe review of the five-year strategic plan shows that the details of the plan have not been dearly

How the community answered

(34 responses)

A
56% (19)
B
26% (9)
C
12% (4)
D
6% (2)

Explanation

A significant governance issue that must be reported to the board is the absence of a formal risk management and control process, with risk management being solely the responsibility of operational managers. Effective governance requires a structured risk management framework overseen at the highest levels of the organization. The lack of such a process indicates a critical deficiency that can have severe implications for the organization's ability to manage and mitigate

Topics

#governance issues#board reporting#risk management process#significant deficiencies

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