A variable that would influence management's decision to hire contractors to perform management control evaluations is

• Why Hire Contractors for Management Control Evaluations?

Management may decide to bring in external contractors when there are gaps in the organization’s

capacity to perform evaluations internally. One key factor is the lack of management expertise—if

management lacks the necessary knowledge or experience to evaluate controls effectively, it may

outsource this task to qualified contractors.

• Why Other Options Are Incorrect:

B . Availability of Qualified Contractors: While availability is a factor, it’s not a variable that influences

the decision to outsource. Instead, it’s a logistical consideration once the decision has been made.

C . Suspicion of Internal Fraud: Suspicion of fraud may lead to investigations, but hiring contractors to

evaluate controls is driven by expertise gaps rather than fraud concerns.

D . Knowledge of Systemic Deficiencies: If management already has knowledge of systemic

deficiencies, they may focus on remediation rather than outsourcing evaluations.

• Reference and Documents:

GAO Standards for Internal Control in the Federal Government (Green Book): Emphasizes the need

for knowledgeable personnel to evaluate controls.

GAGAS (Yellow Book): Highlights the role of external expertise in cases where internal expertise is

insufficient.