Which of the following statements is true regarding consulting engagements?
A.
Internal auditors cannot provide consulting services related to operations for which they had previous responsibilities.
B.
The nature of consulting services to be performed by internal auditors must be defined in the internal audit charter
C.
If internal auditors have potential impairments to objectivity related to the proposed consulting engagement, the engagement must be declined.
D.
If internal auditors lack the knowledge, skills, or other competencies needed to perform the consulting engagement, the engagement can proceed with proper disclosures.
According to IIA standards, the nature of consulting services to be performed by internal auditors must be defined in the internal audit charter. This helps ensure clarity and alignment between the internal audit activity ' s objectives and the organization ' s expectations, while also providing a framework that guides the consulting services provided by internal auditors.
IIA Standard 1000 - Purpose, Authority, and Responsibility, which includes guidelines on the content of the internal audit charter, including the scope of consulting services.
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