Certified Internal Auditor (CIA) Practice Test 2025 – The Complete All-in-One Guide to Exam Success!

Providing provisions for disciplinary action in a code of conduct is significant because it serves to deter violations and ensure accountability among employees. When employees understand that there are clear consequences for unethical behavior or failure to comply with established guidelines, they are more likely to adhere to the code. This helps to create a culture of integrity within the organization, where ethical standards are respected and valued.

Incorporating such provisions solidifies the organization's commitment to ethical behavior, making it evident that compliance is not optional. It establishes a framework within which employees can operate, thereby fostering trust and transparency in workplace relationships. This alignment reinforces the idea that all employees are responsible for their actions and decisions, contributing to a more positive and responsible work environment.

Other options do not capture the essence of what disciplinary provisions accomplish. Encouraging employees to follow their instincts lacks the necessary structure provided by a code of conduct. Maintaining a culture of fear undermines morale and can be counterproductive to fostering a healthy workplace culture. Simplifying management's review process is a secondary benefit but does not address the core purpose of accountability and deterrence inherent in disciplinary actions.