When Internal Auditors Perform Consulting Services That Add Value and Improve

question 245

Multiple Choice

When internal auditors perform consulting services that add value and improve an organization's operations, these services:

• A) Impair the internal auditors' objectivity with respect to an assurance service involving the same engagement client.
• B) Would preclude the achievement of assurance from the consulting engagement.
• C) Should be consistent with the internal audit activity's empowerment reflected in the charter.
• D) Impose no responsibility to communicate information other than to the engagement client.

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Definitions:

T Accounts

A graphic representation of a journal entry in accounting, shaped like a "T", showing debits on the left and credits on the right.

Fees Earned

Income received from services provided, rather than from the sale of goods.

Normal Balance

The side (debit or credit) where an account increases in accordance with double-entry bookkeeping.

Net Discounted Cash Flow

A financial metric that estimates the value of an investment or project by discounting future cash flows to their present value and subtracting initial costs.