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ACCA Strategic Professional · Strategic Business Leader · Managing, monitoring and mitigating risk

Calder Foods plc is a UK-listed company. Under the UK Corporate Governance Code, which responsibility falls to the board regarding risk management and internal control?

The board must monitor the risk management and internal control systems and review their effectiveness at least annually, including assessing principal and emerging risks. Responsibility cannot be delegated to the external auditor or left to one director, and internal audit working papers are not published.

  1. AMonitoring the risk management and internal control systems and reviewing their effectiveness at least annuallyCorrect
  2. BDelegating all responsibility for risk to the external auditor
  3. CPublishing the internal audit working papers to shareholders
  4. DLeaving the assessment of principal risks to the finance director alone without board review

Explanation

The Code requires the board to establish and maintain risk management and internal control systems, assess emerging and principal risks, and monitor and review their effectiveness. Responsibility cannot be passed to the auditor, and the board does not publish audit papers.

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