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:

Government Regulation

Rules or laws established by governments to control or manage specific activities, businesses, or industries.

Economies of Scale

The economic gains achieved by companies through their large-scale operations, which lead to a reduction in the cost per unit as the scale of operation increases.

Product Development

The process of bringing a new product to the market, including ideation, design, creation, and marketing.

Start-Up Costs

The initial expenses incurred during the process of establishing a business, including research, borrowing costs, licensing, and initial marketing.