The chief audit executive at Halvern Group wants to state in the annual report that the internal audit function conforms with the Global Internal Audit Standards. Ongoing monitoring and the periodic self-assessment support conformance, but the last external assessment was completed seven years ago. Which condition governs whether that statement of full conformance may be made?
- AIt may be made on the chief audit executive's own judgement that engagements met the professional requirements, independent of the external assessment outcome.
- BIt may be made once internal assessment results show conformance, since external assessment supports process improvement rather than the conformance claim itself.
- CIt may be made once the audit committee approves the report wording, whatever the underlying quality assessment results happen to show.
- DIt may be made when internal assessment results and a qualifying external assessment together support conformance; without a current external assessment, full conformance cannot be claimed. Correct
Why A is wrong: Personal judgement feels sufficient because the CAE oversees quality, but a conformance statement must be evidenced by the programme results, so unsupported judgement is not an adequate basis.
Why B is wrong: This is tempting because internal assessments do test conformance, but it wrongly demotes external assessment to advisory; the external result is part of the evidence a full conformance statement requires.
Why C is wrong: Committee approval matters for communication, yet approval of wording cannot substitute for the assessment evidence; a conformance statement turns on the programme results, not sign-off of the text.
Why D is correct: A statement of conformance rests on the full quality assurance and improvement programme, which includes a periodic external assessment; because the external assessment is out of date here, the supporting evidence is incomplete and full conformance cannot yet be asserted.