Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 218

An internal auditor tested an application control designed to prevent sales tax from being charged to government agencies. The test revealed that three out of 52 invoices to government agencies included sales tax. Which of the following is an accurate description of the application control?

Answer options

• A. Effective and aligned.
• B. Efficient and effective.
• C. Efficient but not aligned.
• D. Efficient but not effective.

Correct answer: B

Explanation

The control is deemed efficient because it was designed to minimize sales tax charges, but it is also effective since the majority of invoices (49 out of 52) did not incur sales tax. Options A and C do not accurately reflect the performance, as they misrepresent the effectiveness of the control. Option D incorrectly states that the control is not effective.