Which of the following would most likely be classified as a consulting engagement?

Question

Options

• AExamining the internal control effectiveness of the marketing department
• BAssessing the adequacy of the IT system's business process design
• CFacilitating a self assessment of the organizations business risk and control identification
• DReviewing the application controls in the human resources system

• A
  14% (8)
• B
  9% (5)
• C
  74% (42)
• D
  4% (2)

Explanation

Option C is correct because facilitating a self-assessment means the auditor is playing an advisory, enabling role - helping management identify their own risks and controls - rather than independently examining evidence and forming an opinion. This matches the IIA's definition of a consulting engagement: advisory services where the nature and scope are agreed with the client, intended to add value without the auditor assuming management responsibility.

Options A, B, and D are all assurance engagements: they involve the auditor independently examining, assessing, or reviewing controls or system design and providing an objective opinion on their effectiveness or adequacy - the hallmark of assurance work, not consulting.

Memory tip: Look for the auditor's role in the activity. If the auditor is doing the evaluating (examining, reviewing, assessing adequacy), it's assurance. If the auditor is helping others evaluate themselves (facilitating, advising, training), it's consulting. The word "facilitating" in option C is the key signal - facilitated Control/Risk Self-Assessment (CRSA) workshops are a textbook IIA example of consulting.

No community discussion yet for this question.