Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 103

When reviewing operational risk for a department whose manager adopts a laissez-faire style of leadership, it is most important for the internal auditor to verify that:

Answer options

• A. Employee decisions follow department and company guidelines.
• B. The manager considers employees' input when designing new procedures.
• C. Employees are empowered to deal with unusual or emergency situations.
• D. Management has adopted an open-door policy to assist with communication.

Correct answer: A

Explanation

The correct answer is A because in a laissez-faire environment, it's essential to ensure that employee decisions align with established guidelines to maintain order and compliance. The other options, while important for communication and empowerment, do not directly address the need for adherence to guidelines which is critical in managing operational risk.