Certified Internal Auditor (CIA) Part 3: Business Knowledge for Internal Auditing — Question 112

An organization was forced to stop production unexpectedly, as raw materials could not be delivered due to a military conflict in the region. Which of the following plans have most likely failed to support the organization?

Answer options

• A. Just-in-time delivery plans.
• B. Backup plans.
• C. Contingency plans.
• D. Standing plans.

Correct answer: A

Explanation

The correct answer is A because just-in-time delivery plans rely on timely material deliveries, which were disrupted by the conflict. Backup plans, contingency plans, and standing plans are designed to provide alternatives and support during disruptions, making them less likely to fail under such circumstances.