Implementing an effective ethical environment is primarily the responsibility of the audit committee of the Board of Directors.

Question

Quizplus · Accepted Answer

The audit committee of the Board of Directors is responsible for overseeing the company's financial reporting and internal controls, but the implementation of an effective ethical environment is a responsibility of the entire organization, including senior management and employees at all levels. The audit committee can play a key role in promoting ethical behavior through oversight of the company's ethics and compliance programs and ensuring that ethical considerations are integrated into the company's strategic planning and decision-making processes.

Implementing an Effective Ethical Environment Is Primarily the Responsibility of the Audit