The statement that audits may be commissioned by an external entity is...

The statement that audits may be commissioned by an external entity is...

• A. They are always internal to the provider.
• B. They are never connected to regulatory requirements.
• C. They involve only financial audits.
• D. They may be commissioned by an external entity.

Answer: (D)

Audits can be initiated by someone outside the organization, which brings independence and credibility to the review. External commissioning happens when regulators, accreditation bodies, clients, or other third parties hire auditors to assess compliance, quality, or performance, ensuring an objective check beyond what the organization might self-report. This is why the statement is accurate: audits may be commissioned by an external entity. Think about the alternatives with that in mind: audits aren’t restricted to internal providers, so saying they are always internal is not correct. While many audits relate to regulatory requirements, they aren’t exclusively tied to regulation, and they aren’t limited to financial matters—the scope can include processes, safety, quality, and data integrity.

Audits can be initiated by someone outside the organization, which brings independence and credibility to the review. External commissioning happens when regulators, accreditation bodies, clients, or other third parties hire auditors to assess compliance, quality, or performance, ensuring an objective check beyond what the organization might self-report. This is why the statement is accurate: audits may be commissioned by an external entity.

Think about the alternatives with that in mind: audits aren’t restricted to internal providers, so saying they are always internal is not correct. While many audits relate to regulatory requirements, they aren’t exclusively tied to regulation, and they aren’t limited to financial matters—the scope can include processes, safety, quality, and data integrity.