Which of the following behaviors could represent a significant ethical risk if exhibited by an organization's board? 1. Intervening during an audit involving ethical wrongdoing. 2. Discussing…

The correct answer is B. 1 and 4. Intervening during an audit involving ethical wrongdoing (Option 1) and negotiating a settlement of an employee claim for personal damages (Option 4) represent significant ethical risks if exhibited by an organization's board. These actions could indicate attempts to influence…

Managing the Internal Audit Activity

Question

Which of the following behaviors could represent a significant ethical risk if exhibited by an organization's board? 1. Intervening during an audit involving ethical wrongdoing. 2. Discussing periodic reports of ethical breaches. 3. Authorizing an investigation of an unsafe product. 4. Negotiating a settlement of an employee claim for personal damages.

Options

A1 and 2
B1 and 4
C2 and 3
D3 and 4

How the community answered

(42 responses)

A
5% (2)
B
69% (29)
C
17% (7)
D
10% (4)

Explanation

Intervening during an audit involving ethical wrongdoing (Option 1) and negotiating a settlement of an employee claim for personal damages (Option 4) represent significant ethical risks if exhibited by an organization's board. These actions could indicate attempts to influence or undermine the audit process and the fair handling of ethical issues, leading to potential conflicts of interest and compromising the integrity of the organization's governance processes. Discussing periodic reports of ethical breaches (Option 2) and authorizing an investigation of an unsafe product (Option 3) are appropriate and responsible board actions that do not pose ethical

Topics

#board governance#ethics oversight#ethical risk#board behavior

Community Discussion

No community discussion yet for this question.

Full IIA-CIA-PART2 Practice