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Question 293 - IIA-CIA-Part2 discussion

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An organization is expanding into a new line of business selling natural gas. The internal auditor is planning an engagement and wants to obtain a general understanding of the natural gas market the market share that the organization wants to win, and the competitive advantage that the organization may have. Which of the following would be the best source of such information?

A.
Interview responsible managers and read strategic documents
Answers
A.
Interview responsible managers and read strategic documents
B.
Conduct internet searches on gas sales and analyze market players
Answers
B.
Conduct internet searches on gas sales and analyze market players
C.
Review gas clients' portfolio and compile statistics on sales margins
Answers
C.
Review gas clients' portfolio and compile statistics on sales margins
D.
Analyze the organization's revenues and calculate the proportion of gas
Answers
D.
Analyze the organization's revenues and calculate the proportion of gas
Suggested answer: A

Explanation:

To obtain a general understanding of the natural gas market, the market share the organization wants to win, and the competitive advantage the organization may have, the best source of information is to interview responsible managers and read strategic documents. Managers involved in the new line of business will have insights into the market dynamics, strategic goals, and competitive positioning. Strategic documents will provide detailed plans and objectives, giving a comprehensive understanding of the organization's approach and expectations.

The Institute of Internal Auditors (IIA) Practice Guide: Business Acumen for Internal Auditors

IIA Standard 2120 - Risk Management

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asked 18/09/2024
shylashri selvamani
46 questions
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