Certified Internal Auditor (CIA) Part 3: Business Knowledge for Internal Auditing — Question 21

Which of the following best describes a market signal?

Answer options

• A. The bargaining power of buyers is forcing a drop in market prices.
• B. There is pressure from the competitor's substitute products.
• C. Strategic analysis by the organization indicates feasibility of expanding to new market niches.
• D. The competitor announces a new warranty program.

Correct answer: D

Explanation

A market signal is typically an action taken by a competitor that informs others about market conditions or trends, such as a new warranty program. Options A, B, and C describe factors influencing the market but do not represent direct signals that communicate strategic moves by competitors.