Exam IIA-CIA-Part1 All QuestionsBrowse all questions from this exam
Question 86

Which of the following would be the most effective action for an internal audit activity to take in order to assist in improving an organization's ethical climate?

I. Review formal and informal processes within the organization that could promote unethical behavior.

II. Conduct surveys of employees, suppliers, and customers regarding ethics.

III. Assess the employees' knowledge of and compliance with the organization's code of conduct.

    Correct Answer: D

    To effectively improve an organization's ethical climate, an internal audit activity should encompass a comprehensive approach. This involves reviewing formal and informal processes that could promote unethical behavior (I), which helps identify and mitigate potential risks. Conducting surveys of employees, suppliers, and customers regarding ethics (II) provides valuable feedback on perceptions and experiences, identifying areas for improvement. Assessing employees' knowledge of and compliance with the organization's code of conduct (III) ensures that all members understand and adhere to the ethical standards. Therefore, the most effective action would include all three elements to cover a broad spectrum of ethical considerations.

Discussion
jicabratmeOption: A

"the most effective" suggests only one action

Nanachang

Sounds not right to say `promote unethical behavior. ` but it could work to identify unethical behavior and solve the problem.

nitaaOption: C

It should be C