Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 134

A toy manufacturer receives certain components from an overseas supplier and uses them to assemble final products. Recently, quality reviews have identified numerous issues regarding the components' compliance with mandatory quality standards. Which type of engagement would be most appropriate to assess the root causes of the quality issues?

Answer options

• A. A risk assessment.
• B. An operational audit.
• C. A third-party audit.
• D. A fraud investigation.

Correct answer: B

Explanation

An operational audit is designed to evaluate the effectiveness and efficiency of operations, making it suitable for identifying root causes of quality issues in component assembly. A risk assessment focuses on identifying potential risks, while a third-party audit checks compliance by external standards, and a fraud investigation looks for dishonesty rather than operational inefficiencies.