Certified Internal Auditor (CIA) Part 3: Business Knowledge for Internal Auditing — Question 122

During a review of the tendering process, an internal auditor observes that unusual bidding requirements for IT hardware across several tenders appears to consistently favor one supplier. The internal auditor suspects that a bid-rigging scheme is occurring. Which of the following best describes the methodology used by the internal auditor?

Answer options

• A. Diagnostic analysis.
• B. Predictive analysis.
• C. Textual analysis.
• D. Network analysis.

Correct answer: A

Explanation

The correct answer is A, Diagnostic analysis, as it involves examining data to identify patterns or anomalies that indicate irregularities, such as bid-rigging. Predictive analysis (B) focuses on forecasting future outcomes based on historical data, while textual analysis (C) deals with analyzing text data, which is not the primary focus here. Network analysis (D) examines relationships and connections, which also does not apply to the scenario presented.