Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 271

Which of the following statements is true regarding the internal audit activity's reliance on the work of other internal or external assurance providers?

Answer options

• A. The internal audit activity should place greater reliance on the work of external assurance providers than that of internal assurance providers.
• B. The internal audit activity should always complete additional assurance work to supplement the work of external assurance providers.
• C. The internal audit activity should use an ad hoc process to determine how it will place reliance on the work of others.
• D. The internal audit activity may place reliance on the work of other assurance providers regardless of whether the other assurance providers are independent.

Correct answer: B

Explanation

The correct answer is B because the internal audit activity is responsible for ensuring the adequacy of the assurance provided, which often necessitates additional work to complement what external assurance providers have done. Answer A is incorrect as it suggests a hierarchy of reliance that does not reflect best practices. Answer C is misleading since reliance should be based on a systematic evaluation rather than an ad hoc approach, and D is wrong because the independence of assurance providers is a critical factor in determining reliance.