Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 32

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?

Answer options

• A. Communication of any internal ethics violations to external parties may occur with appropriate safeguards.
• B. Cultural impacts are less critical where the organization practices uniform polices around the globe.
• C. Cross-cultural differences should always be handled by the staff of the same cultural background.
• D. Local law enforcement should be involved as they are more familiar with the applicable local laws.

Correct answer: A

Explanation

The correct answer, A, indicates that it is acceptable to communicate about internal ethics violations to external parties if safeguards are in place to protect sensitive information. Option B is incorrect because cultural impacts are significant and can influence the investigation process. Option C is wrong as it suggests that only staff from the same culture should handle these differences, which is not always feasible or effective. Option D is not the best choice since while local law enforcement can be helpful, it is not a requirement for all investigations.