CRMA Internal Audit's Consulting Role 2

Question 1

According to IIA Standards, the nature and scope of consulting services are primarily determined by:

Accepted Answer

Agreement between internal audit and the engagement client

Answer

The Chief Audit Executive based solely on risk assessment

Answer

The audit committee's annual charter approval

Answer

External regulatory requirements

Question 2

Which best distinguishes a consulting engagement from an assurance engagement?

Accepted Answer

In assurance the auditor independently assesses evidence; in consulting the auditor serves the client's stated advisory needs

Answer

Consulting requires a formal audit opinion while assurance does not

Answer

Assurance engagements are reactive while consulting engagements are proactive

Answer

Consulting engagements must always be included in the annual audit plan

Question 3

A business unit manager asks internal audit to help design a new vendor onboarding process. This is best classified as:

Accepted Answer

A consulting engagement

Answer

An assurance engagement

Answer

A compliance review

Answer

An internal investigation

Question 4

Training employees on internal control concepts is an example of which type of consulting activity recognized by the IIA?

Accepted Answer

Training

Answer

Attestation

Answer

Facilitation

Answer

Advisory

Question 5

When internal auditors perform consulting activities, they are required to maintain:

Accepted Answer

Objectivity, with disclosure of any impairments to independence

Answer

Absolute independence from all management functions at all times

Answer

Physical separation from the consulting client during fieldwork

Answer

A separate budget independently approved by the board

Question 6

An internal auditor who helped design a control is later assigned to audit that same control. The auditor should:

Accepted Answer

Disclose the prior consulting involvement and assess whether objectivity is impaired before proceeding

Answer

Proceed normally since consulting and assurance are formally separate engagement types

Answer

Obtain written approval from the external auditor before conducting the audit

Answer

Refuse all future audit assignments in that business unit permanently

Question 7

In a consulting engagement, who is the primary beneficiary of the work product?

Accepted Answer

The engagement client (typically management)

Answer

The audit committee

Answer

The external auditors

Answer

Shareholders and stakeholders