Line Management of a Manufacturing Operation Requests an Operational Audit

question 124

Multiple Choice

Line management of a manufacturing operation requests an operational audit. They are seeking recommendations for policies and procedures to enhance control over the operation. What should the internal audit activity do?

• A) Review the effectiveness of current policies and procedures but avoid making control recommendations due to impaired objectivity.
• B) Perform the engagement and make appropriate recommendations for policies and procedures.
• C) Turn down the engagement because recommending controls would impair future objectivity regarding this client.
• D) Turn down the engagement because an operational audit should not review policies and procedures.

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Definitions:

Individual Rights

The liberties and rights guaranteed to each person, often protected under law or constitution.

Industrial Relations System

A conceptual framework concerning the structure and processes involved in the employment relationship, including the interactions among employers, employees, and their representatives.

Worker Rights

The legal, moral, and social entitlements that relate to individuals' conditions and treatment in their place of employment.

Employer Rights

The legal protections and authorities granted to employers, such as the right to manage and operate their business, make employment decisions, and establish workplace policies within the framework of the law.