what would the CAUSE be?

CASES I the Code as a cation the week CASE 1 Review the engagement observation that follows and record the specific information that represents the ree ommendation and each of the following observation attributes: criteria, condition, cause, and effect. irement to ack s who continue to the Code will be provided review and follow-up the Audit Observation and Recommendation: Corporation X associates are required to abide by the organization's formal Code of Business Conduct & Ethics (the Code). To ensure all employees are aware of the Code and their obligations under it, Corporation X requires all associates to acknowledge receipt of the Code. A global email was sent to all associates on July 1 inform- ing them of their obligation to read and acknowledge the Code. Associates were instructed to complete and return acknowledgments by December 1. Our audit testing indi- cated the following relative to the acknowledgment pro- cess: Management Response: Associates who have not acknowledged the C March 2 will be sent a reminder notification th April 3 informing them of the requirement to de the Code. A report of all associates who cont be delinquent in acknowledging the Code will be to the applicable HR liaison for review and follow week of April 17. The HR function will partner with deatment business heads of delinquent associate obtain the necessary acknowledgments. A final will be generated the week of April 24 to determine the remaining associates who have not acknowledged the Cade. A verbal warning will be issued to all associate who have not acknowledged the Code by April 24 and written warning will be provided to associates who have not acknowledged the Code by April 30. Accountability: Jane Doe Responsibility: John Smith Implementation Date: March 24 Does the observation, as presented, adequately address all of the suggested observation attributes? If not, explain why As of March 1, fewer than 50 percent of associates had completed and returned acknowledgments. Follow-up procedures have not been performed by human resources (HR) or department management to date. There is not a formal policy indicating actions to be taken if and when associates do not return acknowl- edgments. No disciplinary actions have been taken regarding associates who have not completed acknowledgments of the Code to date. Improving the acknowledgment process will help Cor- poration X demonstrate compliance with external reg ulations requiring a Code of Ethics. It will also help to ensure all associates are aware of their responsibilities and obligations to the organization under the Code. We recommend management enhance the acknowledge ment tracking process to ensure all associates acknowl- edge receipt of compliance with, and understanding of the Code. Policy and procedures need to be developed and implemented to take appropriate action when associ ates do not respond. Disciplinary action should be taken if associates refuse to complete and return acknowledg- ments, as required by policy