Certified Internal Auditor (CIA) Part 3: Business Knowledge for Internal Auditing — Question 65

The process of scenario planning begins with which of the following steps?

Answer options

• A. Determining the trends that will influence key factors in the organization's environment.
• B. Selecting the issue or decision that will impact how the organization conducts future business.
• C. Selecting leading indicators to alert the organization of future developments.
• D. Identifying how customers, suppliers, competitors, employees, and other stakeholders will react.

Correct answer: B

Explanation

The correct answer is B because the first step in scenario planning is to identify the key issue or decision that will shape the organization’s future actions. Options A, C, and D represent subsequent steps that build upon the initial decision-making process.