Final answer:
The board must set clear requirements for ethical standards, compliance officers, financial reporting, and internal auditors to ensure corporate governance effectiveness and integrity.
Step-by-step explanation:
The board of directors, which is elected by the shareholders, is tasked with being the first line of corporate governance and oversight for an organization's top executives.
They must set clear requirements for ethical standards, compliance officers, financial reporting, and internal auditors to ensure the integrity and accountability of the company's operations. An effective board assures investors and other stakeholders of the accuracy of the financial information provided, as was not the case in the corporate governance failure at Lehman Brothers.