CRMA Internal Audit's Consulting Role 3

Question 1

What should internal audit do FIRST when receiving a consulting request from management?

Accepted Answer

Assess whether the request aligns with organizational risk priorities and the audit charter

Answer

Internal audit must first evaluate whether the consulting request is appropriate given charter authorization and organizational risk priorities.

Question 2

When a consulting engagement scope expands significantly beyond what was originally agreed, internal audit should:

Accepted Answer

Formally re-discuss and re-agree the revised scope with the client

Answer

Scope changes should be formally re-agreed with the client to maintain clarity and protect both parties throughout the engagement.

Question 3

What is the greatest risk when internal audit takes on extensive consulting work for management over time?

Accepted Answer

Internal audit may lose the objectivity and independence needed to perform assurance work

Answer

Extensive consulting involvement with management can gradually impair the objectivity required for internal audit's assurance responsibilities.

Question 4

During a consulting engagement, internal audit identifies a significant fraud risk that falls outside the agreed scope. The auditor should:

Accepted Answer

Promptly disclose it to appropriate management and governance bodies

Answer

Significant risks discovered during consulting must be communicated promptly to appropriate parties, regardless of engagement scope limitations.

Question 5

Which resource consideration is unique to planning consulting engagements compared to assurance engagements?

Accepted Answer

The client may actively contribute subject matter expertise and resources to the engagement

Answer

Consulting engagements are often collaborative, with the client contributing expertise and resources, unlike traditional assurance engagements.

(CRMA) Certification in Risk Management Assurance Practice Test