Which of the following is an indicator that the internal audit activity does not fully conform with the Standards?

Question

Options

• AThe quality assurance and improvement program identified several opportunities for the internal
• BIn lieu of an external assessment, the internal audit activity performed a self-assessment with
• CDuring an internal quality assessment, it was identified that rotational auditors often perform
• DExternal assessments are performed every five years by a competent internal audit team from the

• A
  2% (1)
• B
  82% (45)
• C
  5% (3)
• D
  11% (6)

Explanation

Option B indicates non-conformance because the IIA Standards (specifically Standard 1312) require that external assessments be conducted at least once every five years by a qualified, independent assessor from outside the organization. While a self-assessment with independent validation is a permissible alternative to a full external assessment, the "independent validation" component must still involve an external party - performing the entire process internally strips it of the independence required, meaning the external assessment obligation is not satisfied.

Option A is wrong because a QAIP identifying opportunities for improvement is exactly what it is designed to do - this signals the program is functioning as intended, not that it is deficient.

Option C is wrong because using rotational auditors is a standard practice and does not inherently conflict with any IIA Standard requirement.

Option D is wrong because conducting external assessments every five years aligns with the Standards' timing requirement; if that team is genuinely from outside the organization, the assessment is valid.

Memory tip: Anchor the word external to outside - any time an "external" assessment is performed by people inside the organization (or validated only internally), that is your non-conformance signal. Ask yourself: "Did someone from outside do this or verify this?"

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