Asked by Tasha Christina on Jul 19, 2024
Verified
Ideally, which of the following should oversee the ethics audit?
A) The board's financial audit committee
B) The CFO
C) The CEO
D) Outside consultants
E) Secondary stakeholders
Ethics Audit
An in-depth examination of how an organization's actions align with its stated ethical guidelines, aimed to uncover areas requiring enhancement.
Financial Audit Committee
A subgroup of a company’s board of directors focused on overseeing the financial reporting and disclosure process.
CFO
Chief Financial Officer, an executive responsible for managing the financial actions of a company, including financial planning, risk management, and record-keeping.
- Absorb the initial measures and contemplations crucial for instigating and implementing an ethics audit.
Verified Answer
UM
Usama ManzoorJul 25, 2024
Final Answer :
A
Explanation :
The board's financial audit committee is the ideal choice for overseeing the ethics audit as this committee is responsible for ensuring the integrity of the organization's financial reporting and controls. Ethics audits can uncover organizational practices that may have financial implications, and therefore, it is natural for the board's financial audit committee to oversee this process. Additionally, the board's financial audit committee can provide an independent perspective on ethical issues and can make recommendations to the board of directors based on the findings of the ethics audit.
Learning Objectives
- Absorb the initial measures and contemplations crucial for instigating and implementing an ethics audit.