The most relevant action to determine the effectiveness of controls, particularly in relation to inventory, is conducting a surprise inventory count at the raw materials warehouse. This action allows the auditor to directly assess the operational effectiveness of the inventory control processes and procedures in place, providing tangible evidence of whether controls are functioning as intended to safeguard assets.

IIA guidance on performing direct control testing and evaluating control effectiveness.QUESTION NO: 443

Which of the following would be the most suitable internal control framework for an organization to adopt?

A. A framework that specifies common best practices for an organization to evaluate and benchmark.

B. A framework that specifies correct and incorrect business methodologies.

C. A framework with precise specifications for how controls and processes should be employed.

D. A framework that offers step-by-step guidance for remedial action for all organization types.

Answer: A

The most suitable internal control framework for an organization is one that specifies common best practices for the organization to evaluate and benchmark. This type of framework provides a structured approach to assess and enhance their control environment by aligning it with recognized best practices, facilitating continuous improvement, and enabling benchmarking against industry standards or peer organizations.References: Institute of Internal Auditors (IIA) - International Professional Practices Framework (IPPF)