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CISA QUESTION #1732
Question 1
Within a business organisation, which tier of personnel is typically held legally liable by government authorities for failures in internal control?
  • President, vice presidents, and all formally designated corporate officers✔️
  • Board of directors, president, vice presidents, department directors, and all managers
  • Every member of management without exception
  • Board of directors, CEO, CFO, CIO, and department directors
Correct Answer Explanation
Government regulators generally hold true corporate officers — those holding titles of vice president and above within the parent organisation — legally accountable for internal control failures. A CIO at division level may or may not qualify as a true corporate officer. Department directors and their subordinates are generally not personally liable to government authorities for control failures; they support the vice presidents above them in the governance hierarchy.