The board of directors of a global organization has found an increased number of reported cases of unethical practices since last year. To assist the board in gaining a better understanding of the degree of ethics awareness within the organization, which of the following actions should be undertaken?

The board's objective is to "gain a better understanding of the degree of ethics awareness." An organization-wide employee survey is the most direct and comprehensive method to assess the current state of ethical awareness, perceptions, and culture across the entire workforce. This diagnostic tool gathers baseline data directly from employees, helping to identify specific areas of weakness or confusion. The results can then inform more targeted actions, such as specialized training, policy revisions, or a formal assurance engagement.

A. Request the internal audit activity to perform an ethics-related assurance engagement. This is a valid but more intensive step. A survey provides a broader, initial understanding, which can then help scope a more focused assurance engagement.
B. Offer in-house ethics-related training seminars for employees to attend. This is a remedial action. It attempts to solve a problem without first fully understanding its scope and nature, which is the board's primary goal.
C. Reaffirm the importance of the organization's code of ethics to all employees. This is a communication or reinforcement tactic. It does not measure or provide an understanding of the current level of employee awareness. ---

1. The Institute of Internal Auditors (IIA). (2017). Practice Guide: Auditing Culture. In Section 3.3, "Data Collection and Analysis," the guide explicitly lists surveys as a primary method for gathering data on organizational culture. It states, "Surveys can be an efficient way to gather a large amount of data from a broad population... to gain an understanding of employees’ perceptions of the organization’s culture." (p. 17).

2. The Institute of Internal Auditors (IIA). (2012). Practice Guide: Auditing the Control Environment. This guide emphasizes the importance of assessing "soft controls," including ethical values and employee awareness. It notes that auditors can use tools like "questionnaires and surveys" to evaluate the attitudes and awareness of personnel, which directly aligns with the board's need to understand the current state. (Section: "Gathering Information on the Control Environment").

3. KPMG. (2018). An ethical compass: The board’s role in establishing and sustaining an ethical culture. This publication from a reputable source, while not an academic paper, reflects industry best practices. It discusses the board's oversight role and mentions using "employee surveys" and "culture assessments" as key tools to gauge the effectiveness of the ethics and compliance program and understand the prevailing culture. (p. 8).