Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 11

Which of the following would be an appropriate improvement to controls over large quantities of consumable material that are charged to expense when placed in bins which are accessible to production workers?

Answer options

• A. Relocate bins to the inventory warehouse.
• B. Require management to compare the cost of consumable items used to the budget.
• C. Lock the bins during normal working hours.
• D. None of the above actions are needed for items of minor cost and size.

Correct answer: B

Explanation

The correct answer is B because requiring management to compare the costs to the budget adds a layer of financial oversight and accountability. Option A does not address the control issue, while option C could impede access to necessary materials, and option D dismisses the need for control entirely, which could lead to potential misuse.