CIMA BA4 · Chapter 7 · Question 2 of 10
Who is ultimately responsible for a company's system of internal control?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) The board of directors
Explanation
The board is responsible for the company's risk management and internal control systems and for reviewing their effectiveness. Internal audit evaluates controls and reports to the board or audit committee, and the external auditor considers controls for the audit, but neither is responsible for them.
More Internal control, risk and audit MCQs
- Q4Which of the following best describes the 'control environment'?
- Q5Which of the following is a key difference between internal audit and external audit?
- Q6To whom should the head of internal audit ideally have direct access in order to protect independence?
- Q7Which of the following is a limitation of any system of internal control?
- Q8Which of the following describes a 'detective' control?