IIA-CIA-PART2 · Question #150
A toy manufacturer receives certain components from an overseas supplier and uses them to assemble final products Recently quality reviews have identified numerous issues regarding the components'…
The correct answer is B. An operational audit. An operational audit would be the most appropriate type of engagement to assess the root causes of the quality issues with components received from an overseas supplier. Operational audits focus on the efficiency and effectiveness of operations, and in this context, would…
Question
A toy manufacturer receives certain components from an overseas supplier and uses them to assemble final products Recently quality reviews have identified numerous issues regarding the components' compliance with mandatory quality standards. Which type of engagement would be most appropriate to assess the root causes of the quality issues?
Options
- AA risk assessment
- BAn operational audit
- CA third-party audit
- DA fraud investigation
How the community answered
(38 responses)- A16% (6)
- B71% (27)
- C5% (2)
- D8% (3)
Explanation
An operational audit would be the most appropriate type of engagement to assess the root causes of the quality issues with components received from an overseas supplier. Operational audits focus on the efficiency and effectiveness of operations, and in this context, would involve examining the processes related to the procurement, inspection, and quality control of components to identify the underlying causes of the quality problems.
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