The Institute of Internal Auditors (IIA) Updated Their Three Lines

Multiple Choice

The Institute of Internal Auditors (IIA) updated their three lines of defense model in 2020 to reflect the need for aligned assurance from various areas of a company. Which of the following is the best definition of external auditors?

A) External auditors focus on ensuring that the second and third lines of defense are working cohesively to provide appropriate coverage over a company's risks.
B) External auditors provide the systematic and independent review of data, information, records, and operations of a business to provide assurance of the effectiveness of internal controls and efficiency of processes.
C) External auditors evaluate whether the financial statements of the audited company are free from material misstatements and are presented in accordance with accounting standards.
D) External auditors employ rigorous independence checks to ensure that their opinions will be unbiased and that they do not have inappropriate ties to the client.