Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 160

Which of the following statements is correct regarding disclosure of conformance or nonconformance with the Standards?

Answer options

• A. An internal audit activity that has been in existence fewer than five years cannot indicate that it is operating in conformance with the Standards because it has not yet undergone an external assessment.
• B. Once an external assessment validates conformance with the Standards, the internal audit activity may continue to use the statement until the next external assessment.
• C. If it has been more than five years since the last external assessment was conducted, the internal audit activity must cease indicating that it operates in conformance with the Standards.
• D. The chief audit executive must disclose every instance of noncompliance with the Code of Ethics or the Standards.

Correct answer: B

Explanation

Option B is correct because once an external assessment has confirmed conformance, the internal audit activity can continue to assert this until the next assessment occurs. Option A is incorrect as it misrepresents the conditions under which an internal audit can claim conformance. Option C is wrong since the requirement to cease claiming conformance is contingent on not having an external assessment within that timeframe. Option D is inaccurate because not every instance of noncompliance must be disclosed, only significant ones.