Which of the following is NOT a recommended strategy for strengthening the board's knowledge of business...
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Which of the following is NOT a recommended strategy for strengthening the board's knowledge of business and financial statement risks?
Communication with internal and external auditors.
Maintaining a broad network of information sources inside and outside the organization.
Performing ratio analysis on detailed accounts and tracing transactions to underlying support.
Understanding the incentives, pressures, motivations and opportunities for wrongdoing within the company.
Homework Answers
Solution:
"Understanding the incentives, pressures, motivations and opportunities for wrongdoing within the company" is NOT a recommended strategy for strengthening the board's knowledge of business and financial statement risks.
Hence last option is correct.
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