Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 127

An organization's board received complaints regarding suspicious business dealings involving different departments and asked the internal audit activity to carry out investigations on the complaints. Internal auditors should have a general understanding of which of the following in order to facilitate the investigations?

Answer options

• A. Risk management techniques.
• B. Internal controls.
• C. Forensic auditing.
• D. Corporate governance structures.

Correct answer: C

Explanation

The correct answer is C, as forensic auditing is essential for internal auditors to investigate and analyze potentially fraudulent activities. While options A, B, and D are important for overall organizational governance and risk management, they do not provide the specialized skills necessary for examining suspicious business practices.