An elaborate system of checks and balances, whereby a company's leadership is held accountable for building shareholder value and creating confidence in the financial reporting processes, is referred to as:
A)Enterprise risk management
B)Corporate governance
C)Application controls
D)Internal control structure

Question

Quizplus · Accepted Answer

The term "checks and balances" refers to a system where different branches or groups within an organization monitor and balance each other's actions to prevent abuses of power. In the context of a company, this means establishing a system of corporate governance that places checks on the actions of senior executives and board members to safeguard the interests of shareholders and stakeholders. This system typically includes policies and procedures for financial reporting, risk management, ethical conduct, and accountability. Options A, C, and D are related to specific components of the internal control structure, but do not encompass the broader concept of corporate governance.

An Elaborate System of Checks and Balances, Whereby a Company's