Key Indicators for Legal and Regulatory Compliance

C.

The BEST indication that an organization has achieved legal and regulatory compliance is option C, "Periodic external and internal audits have not identified instances of noncompliance." Here is why:

Option A, "The board of directors and senior management accept responsibility for compliance," is a good start, but it is not enough on its own to ensure compliance. While accepting responsibility for compliance is an important step, it does not guarantee that the organization is actually compliant with legal and regulatory requirements.

Option B, "An independent consultant has been appointed to ensure legal and regulatory compliance," may be helpful, but it is not a sufficient indicator of compliance on its own. While hiring an independent consultant can provide additional expertise and oversight, it does not guarantee that the organization is actually complying with legal and regulatory requirements.

Option D, "The risk management process incorporates noncompliance as a risk," is also important, but it is not the BEST indication of compliance. While incorporating noncompliance as a risk is a good practice, it does not guarantee that the organization is actually complying with legal and regulatory requirements.

Periodic external and internal audits are important for evaluating an organization's compliance with legal and regulatory requirements. External audits are conducted by third-party auditors, while internal audits are conducted by the organization's own audit team. These audits can help identify instances of noncompliance and provide recommendations for corrective action. If an organization has undergone periodic external and internal audits without identifying instances of noncompliance, it is a strong indication that the organization has achieved legal and regulatory compliance.

In summary, while all of the options presented may be helpful in achieving compliance, the BEST indication of compliance is periodic external and internal audits that have not identified instances of noncompliance.