Under what condition can a Policy Exception not be approved related to the control objective and its state?

A Policy Exception cannot be approved if the control objective is without controls because the primary purpose of a control objective is to define the controls that mitigate specific risks. If there are no controls associated with a control objective, there is no framework to evaluate or manage the associated risks, making it impossible to justify any exceptions.

In scenarios where control objectives do not have controls, the very basis for establishing risk management policies and procedures is absent. Thus, it is inherently difficult to make a case for an exception, as exceptions are typically granted to accommodate specific circumstances or to address shortcomings in existing controls. Without any controls in place, there can be no rationale for an exception, as there is no existing measure to gauge compliance or effectiveness against which the exception could be evaluated.

This situation differentiates itself from other choices where control objectives have at least some controls associated with them, even if they are in states that might limit their effectiveness. In those cases, it may still be possible to approve a policy exception based on the context of the existing controls.