According to IIA guidance, which of the following is true when the internal audit activity is asked to investigate potential ethics violations in a foreign subsidiary?

Question

Options

• ACommunication of any internal ethics violations to external parties may occur with appropriate
• BCultural impacts are less critical where the organization practices uniform polices around the
• CCross-cultural differences should always be handled by the staff of the same cultural background.
• DLocal law enforcement should be involved as they are more familiar with the applicable local laws.

• A
  74% (32)
• B
  16% (7)
• C
  7% (3)
• D
  2% (1)

Explanation

According to IIA guidance, when the internal audit activity investigates potential ethics violations in a foreign subsidiary, communication of any internal ethics violations to external parties may occur, but only with appropriate safeguards. This ensures that sensitive information is protected and that the organization complies with both local and international legal requirements. Cross- cultural differences and local laws must be considered, but the primary focus is on maintaining appropriate safeguards during communication.

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