Which of the following represents the clearest distinction between the responsibilities of the board of directors and senior management in the context of fraud risk management?
-
A
The board is responsible for designing internal controls, while management is responsible for testing their effectiveness.
-
B
The board has the ultimate responsibility for fraud risk oversight, while management is responsible for the day-to-day implementation of anti-fraud programs.
-
C
Management is responsible for setting the 'tone at the top,' while the board is responsible for communicating it to employees.
-
D
Management is responsible for hiring external auditors, while the board is responsible for overseeing the internal audit function.