What is the greatest concern for auditors regarding the outsourcing of core activities?

When considering the outsourcing of core activities, auditors are particularly concerned about the potential loss of control and competitive advantage that arises from outsourcing these critical functions. Core activities are typically the processes that contribute significantly to a company's unique value proposition and market positioning. If a company outsources these activities, it risks losing vital knowledge, capabilities, and the ability to innovate, which can fundamentally impact its competitive edge in the industry.

Auditors focus on the strategic implications of outsourcing core activities. If these activities are managed by third parties who may not share the same priorities or level of commitment to the organization's success, it can lead to misalignments and disruptions. The transfer of sensitive or proprietary information to an external vendor also raises significant security and compliance concerns.

While the other options highlight important aspects of outsourcing, such as contract management and vendor relationships, the fundamental issue lies in the potential jeopardization of the competitive advantages that come from retaining control over essential business functions. This is why the greatest concern for auditors is the outsourcing of core activities that provide competitive advantage.