Certified Internal Auditor (CIA) Part 3: Business Knowledge for Internal Auditing — Question 214

An internal auditor is auditing their organization’s termination process. A primary objective of this engagement is to verify that exit interviews were conducted for all terminated employees over the last two years. The auditor discovered that not all employees received exit interviews. Which of the following risks could this lead to?

Answer options

• A. The risk of employee turnover.
• B. The risk of noncompliance with a local labor law.
• C. The risk of incorrect severance payments.
• D. The risk of a confidentiality breach.

Correct answer: D

Explanation

The correct answer is D because not conducting exit interviews can result in sensitive information being inadequately handled or disclosed, leading to potential confidentiality breaches. Options A, B, and C are less directly related to the absence of exit interviews, as they pertain to employee retention, legal compliance, and severance calculations, respectively.