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Exam IIA-CIA-Part2 topic 4 question 89 discussion

Actual exam question from IIA's IIA-CIA-Part2
Question #: 89
Topic #: 4
[All IIA-CIA-Part2 Questions]

An audit engagement objective at a manufacturer is to determine the quality of raw materials purchased. Which of the following actions would best enable an internal auditor to satisfy this objective?

  • A. Analyze the provision for sales allowances.
  • B. Analyze the percentage of scrap incurred during production.
  • C. Research the rationale for customer returns.
  • D. Evaluate the volume and characteristics of products rejected during processing.
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Suggested Answer: D 🗳️

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Elvoo
1 week, 4 days ago
B or D?
upvoted 1 times
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balqis32
1 year, 2 months ago
scrap is generated due to the inefficiency or error in the production but D referring to the products (raw mat) during processing.
upvoted 1 times
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WendyLin
3 years, 2 months ago
Please explain why not B ?
upvoted 1 times
KonradK
3 years, 2 months ago
would for the same
upvoted 1 times
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asdfghjk2020
3 years, 2 months ago
B is about scrap , which is a small piece or amount of something, especially one that is left over after the greater part has been used so can't achieve the objective by analysis of scrap, but by the rejected products.
upvoted 1 times
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C (25%)
B (20%)
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