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: A

Explanation:

The inclusion of the clause stating that engagements are conducted in conformance with the International Standards for the Professional Practice of Internal Auditing can be justified if internal audit activity policies and engagement records provide relevant, sufficient, and competent evidence that the statement is correct. This evidence shows adherence to the Standards in audit planning, execution, and reporting, ensuring the quality and reliability of audit results as per the Standards’ requirements.

Reference: International Standards for the Professional Practice of Internal Auditing; guidelines on quality assurance and improvement programs.