Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 38

It would be appropriate for an internal audit activity to use consultants with expertise in health-care benefits when the internal audit activity is:
I. Conducting an audit of the organization's estimate of its liability for post retirement benefits, which include health care benefits.
II. Comparing the cost of the organization's health care program with that of other programs offered in the industry.
III. Training its staff to conduct an audit of health care costs in a major division of the organization.

Answer options

• A. I only
• B. I and III only
• C. II and III only
• D. I, II, and III.

Correct answer: D

Explanation

The correct answer is D because all three scenarios involve aspects of health-care benefits where specialized knowledge would enhance the audit process. Option A is incorrect as it neglects the relevance of the other scenarios, while B and C exclude one of the important tasks that would benefit from expert consultation.