The board of directors is essential for effective corporate governance because it has ultimate responsibility to
A)make sure management implements proper internal control and financial reporting processes.
B)assist management in the preparation of the financial statements.
C)test internal controls and ensure they are working properly.
D)provide a report to the auditor confirming that internal controls are working properly.

Question

Quizplus · Accepted Answer

The board of directors has the ultimate responsibility to make sure management implements proper internal control and financial reporting processes. This encompasses not only testing and ensuring internal controls are working properly, but also providing oversight and guidance in this area. Ultimately, it is the board's responsibility to ensure accurate financial reporting to stakeholders. Choices B, C, and D are not fully accurate in describing the board's responsibilities for effective corporate governance.

The Board of Directors Is Essential for Effective Corporate Governance