Which statement best differentiates internal, external, and supplier audits in CBM T6?

• A. Internal audits assess the company’s own processes.
• B. All of the above.
• C. External audits are conducted by customers or regulators.
• D. Supplier audits evaluate supplier quality, including supplier facilities.

Answer: (B)

In CBM T6, audits are distinguished by who performs them and what is being checked. Internal audits are conducted within the organization to review its own processes, look for gaps, and strengthen internal controls. External audits are carried out by outsiders—customers or regulators—to verify compliance with external requirements, standards, or contractual obligations. Supplier audits focus on the supply chain, evaluating supplier quality and including conditions at the supplier’s facilities to ensure their outputs meet the necessary quality and reliability.

Because each statement describes a valid type of audit, all of the above together best capture the range of auditing this framework expects you to understand. The internal audit emphasis is on self-improvement, the external audit emphasis is on third-party verification, and the supplier audit emphasis is on ensuring supplier quality and capabilities. This combination reflects the full picture of how audits support quality, compliance, and risk management across an organization and its suppliers.