When Reviewing Operational Risk for a Department Whose Manager Adopts

question 342

Multiple Choice

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:

• 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.

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Definitions:

Customer Satisfaction

An evaluation of the extent to which a company’s products or services exceed or satisfy the anticipations of its customers.

Order Cycle Time

The total time from when a customer places an order until the product is delivered, encompassing processing, production, and shipping stages.

Fill Rate

The percentage of customer or production orders satisfied from stock at hand, a key performance metric in inventory management.

Customer Relationship Management

A strategy for managing a company's interactions with current and future customers, utilizing data analysis about customers' history with a company to improve business relationships.