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CISA
QUESTION #1723
Question 1
Among the different assurance mechanisms available, which one is considered acceptable for external purposes, including regulatory licensing and third-party reliance?
Correct Answer Explanation
An independent audit is the gold standard for external reliance because it is conducted by a qualified auditor who has no conflicts of interest with the auditee. Internal audits are often limited by the auditor's employment relationship, which can compromise objectivity. External audits may be constrained in scope by client preferences. Assessments are too informal for licensing or regulatory purposes. Only the independent audit provides the level of rigour and objectivity required for external use.