An organization established 20 years ago has had its internal audit activity in place for the last three years. Which of the following would allow the internal audit activity to accurately state that it is in conformance with the Standards?
A.
Documented assessment was performed by the audit committee and confirmed conformance.
B.
Internal and external assessments are performed annually, and nonconformance results are reported to the board.
C.
The independent and objective judgement of the chief audit executive confirmed conformance with the Standards.
D.
Documented internal assessments are performed periodically and confirm conformance.
According to the IIA Standards, to accurately state conformance with the Standards, an internal audit activity must have:
-An established Quality Assurance and Improvement Program (QAIP).
-Internal assessments, which are either ongoing or periodic and formally documented.
-Periodic external assessments at least once every five years.
If documented internal assessments confirm conformance, and the required external assessments are scheduled or completed within the prescribed timeframe (in this case, still within the first five years of the audit activity's establishment), the internal audit activity can claim conformance.
Given the audit activity is only three years old, external assessments may not yet be due, so documented internal assessments confirming conformance are sufficient for an accurate statement of conformance.
Option B best reflects the recommended approach to ensure that the internal audit activity can accurately state conformance with the Standards by undergoing both internal and external assessments annually, with results reported to the board for transparency and oversight.
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