Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 266

Which of the following is not likely to be included as an audit step when assessing vendor performance policies?

Answer options

• A. Determine whether agreed-upon lot sizes were sent by vendors.
• B. Determine whether only authorized items were received from vendors.
• C. Determine whether the balances owed to vendors are correct.
• D. Determine whether the quality of the goods purchased from the vendors has been satisfactory.

Correct answer: C

Explanation

The correct answer is C because assessing balances owed is more of a financial audit step rather than a performance evaluation of the vendor. Options A, B, and D directly relate to the operational aspects of vendor performance, focusing on delivery, authorization, and quality, which are critical for assessing vendor effectiveness.