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IIA-CIA-PART2 · Question #283

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…

The correct answer is A. Interview responsible managers and read strategic documents. 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…

Planning the Engagement

Question

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?

Options

  • AInterview responsible managers and read strategic documents
  • BConduct internet searches on gas sales and analyze market players
  • CReview gas clients' portfolio and compile statistics on sales margins
  • DAnalyze the organization's revenues and calculate the proportion of gas

How the community answered

(46 responses)
  • A
    87% (40)
  • B
    7% (3)
  • C
    4% (2)
  • D
    2% (1)

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.

Topics

#preliminary survey#business understanding#information sources#engagement planning

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