Certified Internal Auditor (CIA) Part 3: Business Knowledge for Internal Auditing — Question 145

During which of the following phases of contracting does the organization analyze whether the market is aligned with organizational objectives?

Answer options

• A. Initiation phase.
• B. Bidding phase.
• C. Development phase.
• D. Negotiation phase.

Correct answer: C

Explanation

The correct answer is C, as the Development phase is when the organization evaluates the market conditions against its objectives to ensure alignment. The Initiation phase focuses on defining needs, the Bidding phase involves selecting vendors, and the Negotiation phase is about finalizing terms, none of which include market analysis against organizational goals.