Governance relates to
A) the responsibility of the Audit Committee and its relationship to the auditor.
B) the responsibility of those charged with governance regarding compliance with GAAP.
C) responsibilities ensuring that the entity achieves its objectives regarding reliability of financial statements, effectiveness and efficiency of operations and compliance with laws.
D) none of the above.

Question

Quizplus · Accepted Answer

Governance refers to the process of ensuring that an organization achieves its objectives, which includes the reliability of financial statements, effectiveness and efficiency of operations, and compliance with laws. It involves the roles and responsibilities of those in charge of governing an organization, such as the board of directors or executive management. The Audit Committee and compliance with GAAP are part of governance, but they are specific responsibilities within the broader scope of governance.

Governance Relates to