Final answer:
The CEO is not directly responsible for independent internal verification; this task is typically handled by an internal audit team. The audit committee of the board of directors oversees this team as part of the corporate governance structure which also involves an external auditing firm and is accountable to shareholders.
Step-by-step explanation:
Independent internal verification should be conducted periodically, but it is not the responsibility of the CEO of the company. Rather, the task typically falls to an internal audit team that operates independently within the organization. This team is overseen by the audit committee of the board of directors. The core objective of internal verification is to ensure that the company's financial and operational processes are functioning properly and to safeguard against fraud, errors, and inefficiencies.
The board of directors, elected by the shareholders, is charged with overseeing the executive management and ensuring that shareholders' interests are represented. A robust system of internal controls, including regular independent internal verification, is a key aspect of effective corporate governance. The auditing firm hired by the company also plays a significant role in reviewing the financial records and providing an objective assessment.
When internal verification is conducted properly, it supports the accuracy and reliability of financial information provided to investors and other stakeholders, as evidenced by the failure in corporate governance in the case of Lehman Brothers.