IIA-IAP Exam - Topic 5 Question 17 Discussion

Actual exam question for IIA's IIA-IAP exam

Question #: 17
Topic #: 5

Which of the following is considered an organization-level control, as opposed to process-level or transaction-level?

APersonnel policies requiring the employment of competent personnel, based on training and experience, to manage complex functions such as accounting and financial reporting.

BSupervision of finance employees, including day-to-day oversight and periodic performance evaluations.

CSegregated budgeting responsibilities of finance employees, including review and approval of financial reports.

Show Suggested Answer

Suggested Answer: A

Comprehensive and Detailed Step-by-Step Explanation:

Organization-Level Controls: These controls address risks at the entity-wide level, such as governance, tone at the top, and policies affecting multiple processes. Personnel policies requiring qualified employees are an organization-level control as they apply broadly across the organization.

Other Options:

Option B: Supervision is a process-level control, as it directly relates to overseeing specific activities within a department.

Option C: Segregated budgeting responsibilities are a transaction-level control, focused on specific tasks within a process.

Thus, the correct answer is A.

by Lajuana at Nov 25, 2025, 03:29 PM

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Shala

5 hours ago

Wait, are we sure A) is the right answer? Sounds too broad.

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Rasheeda

5 days ago

B) seems more like a process-level control to me.

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Georgiana

10 days ago

I agree, A) makes the most sense here.

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Bethanie

29 days ago

A) is definitely organization-level control.

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Reita

1 month ago

A is the correct answer. Hiring the right people is the foundation of any well-run organization. The rest is just micromanagement and red tape.

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Kathrine

1 month ago

I'm going to go with B. Supervision is key to maintaining control, right? Who needs organization-level policies when you've got a watchful eye on your employees?

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Sommer

1 month ago

A is the correct answer. Hiring competent personnel is an organization-level control, unlike process-level or transaction-level controls.

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Reita

2 months ago

B is the correct answer. Supervision of employees is a process-level control, not an organization-level one.

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Zachary

2 months ago

C is the correct answer. Segregated budgeting responsibilities are a process-level control, not an organization-level one.

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Rolande

2 months ago

A is the correct answer. Organization-level controls focus on the overall structure and policies of the organization.

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Brunilda

2 months ago

I practiced a similar question where the focus was on oversight and evaluation. I feel like B might be more about process-level controls.

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Avery

2 months ago

I remember something about personnel policies being key for organization-level controls, but I’m not completely sure if that’s the right choice here.

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Clay

3 months ago

I think organization-level controls are more about the overall framework rather than specific processes. So, I’m leaning towards A.

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Mari

3 months ago

Alright, I'm going to approach this systematically. First, I'll identify the organization-level characteristics, then match those to the options provided. Segregation of duties and day-to-day oversight seem more process-level, so I'll focus on the personnel policies.

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Blondell

3 months ago

I'm a bit confused on the distinctions here. Can someone explain the differences between these control levels to me? I want to make sure I understand before I start eliminating options.

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Clorinda

3 months ago

Agreed, A shows a broader control approach.

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Leonie

3 months ago

I've got a good feeling about this one. The organization-level control is likely the one that deals with high-level policies and personnel management, rather than the day-to-day supervision or segregation of duties.

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Cassi

3 months ago

I think A is the right choice. It's about the whole organization.

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King

4 months ago

C is too specific. A covers the overall strategy.

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Bobbye

4 months ago

I’m torn between A and C. A seems to fit the definition better, but I recall discussions about how budgeting responsibilities can also reflect organization-level controls.

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Sherita

4 months ago

Okay, let's see. I think the key is to identify which of these controls is focused on the overall organization, rather than specific processes or transactions. I'll need to analyze each option closely.

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Joanne

4 months ago

Hmm, this seems like a tricky one. I'll need to think carefully about the differences between organization-level, process-level, and transaction-level controls.

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