Certified Internal Auditor (CIA) Practice Test

Which of the following is classified as a directive control?

1. Monthly bank statement reconciliations.

2. Dual signatures on all disbursements over a specific amount.

3. Recording every transaction on the day it occurs.

4. Requiring all members of the internal audit activity to be CIAs.

The correct answer is: Requiring all members of the internal audit activity to be CIAs.

Directive controls are designed to influence the behavior of individuals within an organization and provide guidance for achieving specific objectives. These controls establish clear expectations and responsibilities, promoting adherence to policies and procedures. When considering the options given, requiring all members of the internal audit activity to be Certified Internal Auditors (CIAs) serves as a directive control. This requirement sets a standard for the qualifications of internal auditors, ensuring that they have the appropriate skills, knowledge, and training to carry out their responsibilities effectively. By doing so, this control encourages a level of professionalism and accountability within the internal audit function, guiding behavior and aligning the actions of the auditors with the organization's goals. In comparison, other options focus on processes or checks rather than influencing behavior. Monthly bank statement reconciliations are a form of detective control that help identify discrepancies in financial records. Dual signatures on disbursements serve as a preventive control to protect against unauthorized transactions, while recording every transaction on the day it occurs is an operational control that helps maintain accurate and timely records. None of these options provide the same level of guidance regarding the qualifications and conduct expected from individuals in the internal audit function as the requirement for CIAs does.