Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 127

A chief audit executive (CAE) is trying to balance the internal audit activity's needs for technical audit skills, budget efficiency, and staff development opportunities. Which of the following would best assist the CAE in achieving this balance?

Answer options

• A. Strategic sourcing.
• B. Loan staff arrangement.
• C. Flat organizational structure.
• D. Hierarchical organizational structure.

Correct answer: A

Explanation

Strategic sourcing allows the CAE to access specialized technical skills as needed while optimizing budget usage, making it the best choice for balancing these competing needs. Loan staff arrangements, while beneficial, may not provide the same level of control over costs and skills. A flat organizational structure can enhance communication but may lack the necessary depth in technical skills, and a hierarchical structure may impede agility and responsiveness.