Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 108

The internal audit manager has been delegated the task of preparing the annual internal audit plan for the forthcoming fiscal year. All engagements should be appropriately categorized and presented to the chief audit executive for review. Which of the following would most likely be classified as a consulting engagement?

Answer options

• A. Evaluating procurement department process effectiveness.
• B. Helping in the design of the risk management program.
• C. Assessing financial reporting control adequacy.
• D. Reviewing environmental, social, and governance reporting compliance.

Correct answer: B

Explanation

Option B is considered a consulting engagement because it involves providing advice on the design of the risk management program, which is a proactive service. Options A, C, and D are more aligned with assurance engagements as they focus on evaluations or assessments of existing processes and compliance rather than advisory services.