Okay, I'll give it a bit of a explanation here...
According to most any code (I'll reference D1.1 in particular because I am most familiar with it and I don't have ANY of them with me here in HI) the company may choose any person they want to be an inspector based upon Clause 1 'Definitions' and mainly in Clause 6, I believe it is about 6.1?? Anyway, it says that an inspector is either one by testing to an agency such as being a CWI to QC1, or by reciprocity, or by experience or knowledge is qualified to inspect.
So your in house inspector is not REQUIRED to be a CWI. But, the most accepted avenue is to have them qualify as a CWI and then go on from there. See, after attaining the CWI status companies may still require an exam to prove you can inspect things the way they want, either because of the codes they are using or because of other requirements that may separate their job requirements from the BASICS that are involved with becoming a CWI. Things like seismic requirements, bolting requirements, other codes like D1.3, 17.1, 14.3, etc. All of these have code or specification materials but do not have AWS exams to show knowledge in their usage. So, the company can test you to them if they so desire. They can also test to specific Clauses of D1.1 that will show your level of knowledge of a particular Clause.
Now, keep in mind also that QC1 sets up the requirements of the testing itself that one must comply with in order to pass all the qualifications to be certified. B5.2 sets up the requirements one must meet in order to qualify to take the exams in the first place. So, you meet the requirements of B5.2 first then QC1. And having passed all the requirements, one of which are the exams, of QC1 you are a CWI according to QC1. No matter which code you take the open code book exam to you are qualified to QC1 (can throw some people when they look at job specs that say that the CWI's are to be qualified to QC1 and you hear them say, 'What's that? I tested to D1.1.').
Now, this also applies to an engineer or customer who wants a representative to examine his project before it ever comes to his jobsite. He can choose anyone. BUT, they better know their stuff or they will be eaten alive and may be responsible/liable for work they had no real knowledge of QC requirements for.
Thus, from what I am hearing you say and just from my own two tin pennies worth, I would recommend sending personnel through the seminar and exam to get them AWS Certified as CWI's to the standards of QC1 first. Then, set up an in house QC program that includes additional testing of personnel to prove their knowledge and skills according to D17.1. I don't believe that this testing is a requirement but it would help the verification of the process.
Again, hopefully some of the guys who actually deal with D17.1 standards in their work will chime in here. They will be a great resource for you.
Hope this was helpful.
Have a Great Day, Brent