Auditing Culture

Question 1

The invisible belief systems, values, norms, and preferences of the individuals that form an organization.

Answer 1

Culture

Question 2

The tangible manifestation of culture through actions, behaviors, and decisions of the individuals making up an organization.

Answer 2

Conduct

Question 3

What are five cultural characteristics common in healthy organizations?

Answer 3

1. Positive tone from the top
2. Clear communication
3. Open dialogue
4. Employee engagement
5. Incentives aligned with core values

Question 4

What are the three main approaches to auditing an organization’s culture?

Answer 4

1. Integrated
2. Targeted
3. Top-Down

Question 5

Which approach integrates culture risk factors into all engagements?

Answer 5

Integrated approach

Question 6

Which approach selects a set of key culture processes and controls, develops a work plan, and performs targeted testing on the selected areas?

Answer 6

Targeted approach

Question 7

Which approach is a comprehensive audit of all culture-related activities within an organization, starting with the tone at the top and moving down through all organizational layers to individual employees?

Answer 7

Top-down approach

Question 8

What should be the objective of each control for culture risk management activities?

Answer 8

To institute better controls to prevent bad behavior