Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 70

In a retail organization, sales teams compete with each other to achieve and exceed sales targets. Each quarter, the members of the top sales team receive a bonus. In this environment, management should closely monitor for the emergence of which of the following potential risks?

Answer options

• A. Risks related to employee turnover.
• B. Risks related to data manipulation.
• C. Risks related to employee competency.
• D. Risks related to not achieving sales targets.

Correct answer: D

Explanation

The correct answer is D, as the competitive nature of the sales teams can lead to risks associated with failing to meet sales goals. Options A, B, and C, while valid concerns, do not specifically address the immediate risk arising from the intense competition for sales targets that could jeopardize overall performance.