CPEA practice question 4 of 15

An extrinsic audit would normally focus on which of the following?

Full set: 82 questions
Answer options
A: Your company's suppliers Correct answer
B: An internal compliance assessment
C: An assessment of your customers
D: A company's internal quality system review
Correct Answer:
A. Your company's suppliers

Question breakdown

Tests
Classify audit types by party
Difficulty
Easy

Key idea: An extrinsic audit is performed on an outside party, typically a supplier, by the organization that relies on it, which makes it a second-party audit.

How to reach the answer

  1. 'Extrinsic' means outside the auditing organization.
  2. Options B and D describe internal (first-party) audits.
  3. Customers are not normally audited by the organization that sells to them.
  4. Supplier audits are the classic external audit an organization performs, so A is the answer.

Each option

  • ACorrect. Auditing your own suppliers is the typical extrinsic, second-party audit.
  • BIncorrect. An internal compliance assessment is a first-party, intrinsic audit.
  • CIncorrect. Customers usually audit their suppliers, not the other way around.
  • DIncorrect. An internal quality system review is a self-assessment.

Common trap: Option C attracts candidates because customers are also external parties, but the direction of the audit is reversed.

In practice: Supplier audits are common for waste contractors, haulers and disposal facilities to manage liability under environmental law.

Remember: Extrinsic means the organization is auditing an outside party such as a supplier.

Drafted with AI assistance and checked against the answer key.

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