Try a CIA Part 1 question.

Governance, Risk Management, and Control

A listed company's management plans to assess internal control over financial reporting using a checklist written by the finance team. The securities regulator rejects this and requires the assessment to use a suitable, recognized control framework. The chief financial officer asks the chief audit executive why the regulator insists on this. What is the MAIN reason?

• AIt moves accountability for the conclusion from management to the body that issued the framework
• BIt assures investors that the financial statements are free of material error once it is applied
• CIt gives the assessment established criteria that others can understand and evaluate consistently
• DIt removes management's judgment, because the framework prescribes each control to be put in place