To help achieve good governance,international best practice recommends all but which of the following be implemented?
A)A majority the members of the board of directors should not hold management positions.
B)Create an independent audit committee to oversee the financial reporting process.
C)Require the internal audit team report directly to management.
D)Have a compensation committee that aligns management rewards with shareholder interests.

Question

Quizplus · Accepted Answer

International best practice recommends that the internal audit team should report directly to the board of directors or an independent audit committee, not to management. This helps to ensure the independence and objectivity of the internal audit function. Therefore, requiring the internal audit team to report directly to management goes against this recommendation. A, B, and D are all recommended best practices for achieving good governance.

To Help Achieve Good Governance,international Best Practice Recommends All but Which