Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 25

Which of the following statements describes a control weakness?

Answer options

• A. Purchasing procedures are well designed and are followed even when the purchasing supervisor wishes to direct otherwise.
• B. Pre-numbered blank purchase orders are secured within the purchasing department.
• C. Normal operational purchases fall in the range from $500 to $1, 000, with a single signature required for purchases over $1, 000.
• D. The purchasing agent in a personal capacity invests in a publicly-traded mutual fund that lists the stock of one of the company's suppliers in its portfolio.

Correct answer: C

Explanation

Option C reveals a control weakness because it allows for single signature authority over larger purchases, which can lead to potential fraud or abuse. The other options describe strong controls and secure processes that protect against unauthorized actions.