Which of the following is the most effective way for internal auditors to determine whether ethical values are followed throughout the organization?

Which of the following is the most effective way for internal auditors to determine whether ethical values are followed throughout the organization?
A . Review the organization’s ethical value structure and reporting procedures.
B . Review what the organization considers to be ethical behavior, such as the employee code of conduct.
C . Review employee survey responses and follow up on those that suggest weaknesses in the ethical climate.
D . Review the organization’s records to ensure all employees have signed statements that they will follow ethical practices.

View Answer

Answer: C

Explanation:

To effectively determine whether ethical values are followed throughout an organization, internal auditors should review employee survey responses and follow up on those that suggest weaknesses in the ethical climate. This approach allows auditors to gather firsthand insights from employees about the actual ethical environment, which can be more telling than formal documentation or compliance with written policies alone. It provides a direct measure of the ethical culture as experienced and perceived by the employees themselves.

Reference: Institute of Internal Auditors (IIA) – International Standards for the Professional Practice of Internal Auditing; Guidance on assessing organizational culture.