Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 158

An internal auditor is examining the procurement process for design adequacy. Which of the following conclusions by the auditor would most likely suggest further testing is needed?

Answer options

• A. Design is adequate with no significant control issues.
• B. Design is adequate; however, some significant control issues exist.
• C. Design is inadequate and significant control issues exist.
• D. Design is inadequate; however, no significant control issues exist.

Correct answer: C

Explanation

The correct answer is C because it indicates both inadequacy in design and the presence of significant control issues, which necessitates further investigation. Options A and B suggest adequate design, while D indicates inadequacy without significant control issues, thus not requiring additional testing.