Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 36

Which of the following audit findings would have the least impact (either positive or negative) on a department's control environment?

Answer options

• A. The department makes long-term investment risk decisions to maximize return on investment.
• B. The department manager sets and demonstrates a tone of honesty and integrity in all business dealings.
• C. Many department functions are duplicated or verified by other department employees.
• D. Deficiencies were found in the appropriate authorization of transactions.

Correct answer: A

Explanation

Option A has the least impact because long-term investment decisions are typically strategic and do not directly affect the day-to-day control environment. In contrast, options B, C, and D directly relate to the integrity, redundancy, and authorization processes within the department, which are critical to effective control.