Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 182

To compete in the global market. an organization is restructuring and consolidating many of its divisions. Prior to the consolidation, senior management requested assistance from the internal audit activity. Which of the following consulting services would be most appropriate in this situation?

Answer options

• A. Assess controls for potential compliance issues that may affect the consolidation.
• B. Brief vendors on the potential risks that will occur without continued business.
• C. Advise division managers on how to streamline operations for better efficiency.
• D. Determine whether the organization's controls are effective in meeting business objectives.

Correct answer: C

Explanation

The correct answer, C, is appropriate as it focuses on advising division managers on optimizing operations, which is crucial during a consolidation process. Options A and D relate to control assessments, which are less focused on the operational improvements needed during restructuring. Option B is not relevant since it addresses vendor communication rather than internal operational efficiency.