Certified Internal Auditor (CIA) Part 3: Business Knowledge for Internal Auditing — Question 179

During which phase of the contracting process are contracts drafted for a proposed business activity?

Answer options

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

Correct answer: A

Explanation

The correct answer is A, as the Initiation phase is when contracts are prepared for proposed business activities. The Bidding phase involves soliciting proposals, the Development phase focuses on refining the project, and the Management phase is about overseeing contracts after they have been established.