IIA
IIA-CIA-PART2 · Question #18
A code of business conduct should include which of the following to increase its deterrent effect? 1. Appropriate descriptions of penalties for misconduct. 2. A notification that code of conduct…
The correct answer is A. 1 and 2. To increase the deterrent effect of a code of business conduct, it should include appropriate descriptions of penalties for misconduct and notifications that violations may lead to criminal prosecution. These elements clearly communicate the serious consequences of unethical…
Managing the Internal Audit Activity
Question
A code of business conduct should include which of the following to increase its deterrent effect? 1. Appropriate descriptions of penalties for misconduct. 2. A notification that code of conduct violations may lead to criminal prosecution. 3. A description of violations that injure the interests of the employer. 4. A list of employees covered by the code of conduct.
Options
- A1 and 2
- B1 and 3
- C2 and 4
- D3 and 4
How the community answered
(26 responses)- A92% (24)
- B4% (1)
- C4% (1)
Explanation
To increase the deterrent effect of a code of business conduct, it should include appropriate descriptions of penalties for misconduct and notifications that violations may lead to criminal prosecution. These elements clearly communicate the serious consequences of unethical behavior, thus reinforcing the importance of adhering to the code.
Topics
#code of conduct#deterrence#misconduct penalties#ethics program
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