Certified Internal Auditor (CIA) Part 3: Business Knowledge for Internal Auditing — Question 242

Which of the following is a likely result of outsourcing?

Answer options

• A. Increased dependence on suppliers.
• B. Increased importance of market strategy.
• C. Decreased sensitivity to government regulation.
• D. Decreased focus on costs.

Correct answer: A

Explanation

The correct answer, A, indicates that outsourcing often leads to a greater reliance on external suppliers for services or products. The other options, while they may seem plausible, do not directly relate to the typical consequences of outsourcing; for instance, outsourcing can actually increase sensitivity to government regulations depending on the suppliers involved.