The chief audit executive (CAE) decided to conduct a self-assessment with independent validation. Which of the following is the most likely reason the CAE selected this course of action?

Question

Options

• AThe audit committee requested the self assessment for quality assurance purposes
• BThe staff auditors have the necessary knowledge and experience to conduct the review
• CThe internal audit activity is relatively small in size and is due for an external assessment
• DThe internal audit activity is due for a self-assessment which is specifically required at least once

• A
  4% (2)
• B
  71% (34)
• C
  8% (4)
• D
  17% (8)

Explanation

Option B is correct because a self-assessment with independent validation requires that internal audit staff possess sufficient knowledge of the IIA Standards and quality assessment practices to conduct the review themselves. Without that competency, the self-assessment portion would lack credibility, making this approach unviable - staff capability is the prerequisite that enables the CAE to choose this option over a full external assessment.

Why the distractors fail:

• A is wrong because an audit committee request for quality assurance would more likely prompt a full external assessment, not specifically a self-assessment with independent validation.
• C is wrong because small size alone doesn't explain the type of assessment chosen; being "due for an external assessment" actually points toward a full external review, not a hybrid approach.
• D is a reversal of the IIA requirement: it is external assessments that must occur at least every five years (per IIA Standard 1312), not self-assessments - self-assessments have no such mandatory minimum frequency.

Memory tip: Think of self-assessment with independent validation as a team effort - your internal team does the heavy lifting (which requires competence), and an outsider just validates the work. If the team lacks the skills, the whole approach falls apart. The question is really asking: "What makes this option possible?" - and the answer is always staff capability.

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