Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 264

An audit engagement objective at a manufacturer is to determine the quality of raw materials purchased. Which of the following actions would best enable an internal auditor to satisfy this objective?

Answer options

• A. Analyze the provision for sales allowances.
• B. Analyze the percentage of scrap incurred during production.
• C. Research the rationale for customer returns.
• D. Evaluate the volume and characteristics of products rejected during processing.

Correct answer: D

Explanation

Option D is correct because evaluating the volume and characteristics of rejected products directly relates to assessing the quality of raw materials. Options A and C focus on sales and customer behavior, while option B concerns production efficiency rather than the quality of the raw materials themselves.