Which of the following justifies inclusion of this clause in the reports?

An internal audit activity maintains a quality assurance and improvement program that includes annual self-assessments The internal audit activity includes in each engagement report a clause that the engagement is conducted in conformance with the International Standards for the Professional Practice of Internal Auditing (Standards).

Which of the following justifies inclusion of this clause in the reports?
A . Internal audit activity policies and engagement records provide relevant, sufficient, and competent evidence that the statement is correct.
B . The audit committee has reviewed the annual self-assessment results and approved the use of the clause.
C . The self-assessment results were validated by a qualified external review team three years prior.
D . The internal audit charter, approved by the audit committee, requires conformance with the Standards

View Answer

Answer: C

Explanation:

According to the IIA Standards, an internal audit activity must have an external assessment conducted at least once every five years by a qualified, independent reviewer or review team from outside the organization. The validation by an external team ensures that the internal audit activity’s self-assessments and quality assurance practices meet the required standards.

Reference: IIA Standard 1312 (External Assessments) and IIA Standard 1320 (Reporting on the Quality Assurance and Improvement Program) provide detailed guidelines for this process.