Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 277

A new internal auditor is assigned to assess key risks of electricity sales to business clients and wants to gain an understanding of the business. Which of the following is likely to yield the best understanding of significant risks and related controls?

Answer options

• A. A review of the mission statement and long-term strategy of the company.
• B. A set of interviews with a sample of the business clients.
• C. An analysis of a sample of electricity contracts concluded with business customers.
• D. An interview with the manager who is responsible for electricity sales.

Correct answer: D

Explanation

The correct answer is D because interviewing the manager responsible for electricity sales will provide direct insights into operational risks and controls from someone with relevant experience. The other options, while informative, do not offer the same depth of understanding regarding the specific risks and controls in place for electricity sales.