What makes internal audit assessments unique compared to external audits?

Internal audits are unique because they are designed to be continuous and focus on the ongoing processes within the organization for improvement. This approach allows internal auditors to closely monitor and evaluate the effectiveness of risk management, governance, and internal control processes on a regular basis. As they operate within the organization, internal auditors are better positioned to identify areas for enhancement, assess operational efficiencies, and offer timely recommendations. This continuous nature of internal audits supports proactive risk management and helps organizations adapt to changes in the business environment.

The other options presented do not accurately reflect the distinguishing characteristics of internal audits. For instance, while internal audits may sometimes have a structured approach, referring to them as more formal or rigid doesn't encapsulate their dynamic and flexible nature, geared towards improvement. Internal audits are typically conducted more frequently than external audits, which are usually periodic evaluations performed independently of the organization. Additionally, the size of the audit team can vary widely between internal and external audits, and internal audits do not necessarily involve larger teams. Thus, focusing on the continuous improvement aspect effectively highlights what sets internal audits apart from external audits.