Which of the following would a chief audit executive most likely use to identify a need for improvement in a staff internal auditor's business acumen?

Question

Options

• AA quality assessment review.
• BAn internal audit client survey.
• CA control self-assessment.
• DA peer review of the internal audit activity.

• A
  8% (3)
• B
  73% (29)
• C
  18% (7)
• D
  3% (1)

Explanation

An internal audit client survey directly captures feedback from the business stakeholders who interact with the auditor, making it the best tool for identifying gaps in business acumen - clients will notice and report when an auditor lacks understanding of business processes, industry context, or practical relevance in their findings.

Why the distractors are wrong:

• A (Quality assessment review): This evaluates the overall internal audit activity's conformance with standards, not an individual auditor's business knowledge specifically.
• C (Control self-assessment): This is a technique used by auditors to evaluate controls within a business unit - it's a methodology tool, not a personnel evaluation tool.
• D (Peer review): A peer review assesses whether the audit activity conforms to professional standards; peers evaluate technical audit work, not business acumen as perceived by clients.

Memory tip: Think of it this way - business acumen is about understanding the business, so the feedback must come from the business itself. Client surveys = client perspective = the most direct signal that an auditor does or doesn't "get" the business.

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