Introduction:

The frequency of external assessments for the internal audit activity (IAA) is typically every five

years. However, certain circumstances may necessitate more frequent assessments.

Reasons for More Frequent Assessments:

Significant organizational changes or shifts in internal audit leadership can impact the effectiveness

and alignment of the internal audit function with organizational goals.

Options Analysis:

Option A: While changes in accounting policies might warrant review, they do not specifically

necessitate a more frequent external assessment.

Option B: More frequent external assessments cannot substitute for ongoing internal assessments,

which are continuous and serve different purposes.

Option C: Reciprocal external assessments can be cost-effective but are not a primary reason for

increased frequency.

Option D: Changes in senior management or internal audit leadership can lead to shifts in

expectations and commitment to compliance, thus justifying more frequent external assessments to

ensure continued alignment and conformance with standards.

Conclusion:

The most appropriate reason for a chief audit executive (CAE) to conduct an external assessment

more frequently than five years is when there is a change in senior management or internal audit

leadership, as this may alter expectations and commitment to conformance.

Reference:

Internal Audit Standards and Practice Guides .