Which circular covers Management's Responsibility for Enterprise Risk Management and Internal Control (Revised 07/15/2016)?

• A. OMB Circular A-123
• B. OMB Circular A-11
• C. OMB Circular A-127 Revised
• D. OMB Memorandum M-00-13

Answer: (A)

This item tests which circular assigns management responsibility for Enterprise Risk Management and Internal Control. OMB Circular A-123 establishes that responsibility at the highest levels of agency leadership, requiring them to design, implement, and maintain an integrated approach to risk management and internal controls that supports achieving the agency’s objectives. The 07/15/2016 revision updates expectations to align with modern ERM practices, emphasizing an entity-wide view of risks, continuous monitoring, and controls designed to prevent, detect, and correct issues. It also requires management to assess the effectiveness of internal controls, implement corrective actions, and provide annual assurance about control effectiveness to OMB and Congress.

Other circulars address different areas like budgeting and planning or specific financial management requirements, not the overarching framework of management’s responsibility for ERM and internal control.