The effectiveness of the board of directors in contributing to internal control is best enhanced by which of the following?
A) Its independence
B) Its superiority to management
C) Its stockholder representation
D) Its legal power to govern the corporation

Question

Quizplus · Accepted Answer

Independence is crucial for the board of directors to effectively contribute to internal control. If the board is not independent, it may be influenced by management and not be able to provide effective oversight. Independence allows the board to objectively evaluate the organization's internal control system and make necessary changes to improve it. Superiority to management, stockholder representation, and legal power are all important for the board, but they do not necessarily enhance its effectiveness in contributing to internal control.

The Effectiveness of the Board of Directors in Contributing to Internal