Assigning Accountability for Governance Controls over IT
Question
A regulatory audit assessed an enterprise's main transactional application as noncompliant.
In addition to fines and required corrections, an agreement was reached to implement a set of governance controls over IT.
Accountability for these controls is BEST assigned to which of the following?
Answers
Explanations
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A. B. C. D.A.
When a regulatory audit assesses an enterprise's main transactional application as noncompliant, it indicates that the organization's IT governance is inadequate, and corrective measures need to be taken. These measures may include the imposition of fines, mandated corrective actions, and the implementation of governance controls.
To ensure the successful implementation of governance controls, accountability for these controls needs to be assigned to an appropriate entity. In this context, the BEST option for assigning accountability for governance controls over IT is the Board of Directors (C).
Here's why:
Accountability: The board of directors is ultimately responsible for the organization's governance and oversees the implementation of risk management, compliance, and governance policies. Therefore, assigning accountability for IT governance controls to the board of directors aligns with this role and ensures the proper oversight of the controls.
Strategic perspective: The board of directors has a strategic perspective on the organization and understands how IT governance impacts business operations. This enables them to make informed decisions about the appropriate governance controls that need to be implemented and how to prioritize them.
Independence: The board of directors is independent of the IT department and can objectively evaluate the effectiveness of the governance controls. This reduces the risk of bias or conflicts of interest that may arise when IT department members are tasked with governance control implementation and oversight.
Authority: The board of directors has the authority to hold management accountable for the implementation of governance controls, ensuring that they are effectively implemented and maintained over time.
In contrast, assigning accountability to the internal audit director (A) or the CIO (B) may lead to a conflict of interest. The internal audit director's role is to audit the organization's controls and ensure their effectiveness, whereas the CIO is responsible for implementing and maintaining IT controls. Assigning accountability to either of these entities would not provide the necessary independence and oversight required for effective governance control implementation and oversight.
Assigning accountability for governance controls over IT to application users (D) is also not appropriate. Application users may not have the necessary understanding of the organization's overall governance requirements, and they may not have the authority to ensure that the governance controls are effectively implemented and maintained over time.
In conclusion, the BEST option for assigning accountability for governance controls over IT in this context is the Board of Directors (C).
