Question

Which of the following types of engagements, if any, involve an internal auditor conducting performance audits to measure how well an organization is achieving its targets for its key performance indicators?

1.An assurance engagement
2.A consulting engagement
A. 2 only.
B. 1 only.
C. 1 and 2.
D. Neither 1 nor 2.

Answer 1

The correct answer is B. 1 only. Performance audits to measure how well an organization is achieving its targets for its key performance indicators fall under the category of assurance engagements.

Step-by-step explanation:

The correct answer is B. 1 only.

Performance audits to measure how well an organization is achieving its targets for its key performance indicators fall under the category of assurance engagements.

In an assurance engagement, the internal auditor provides an independent and objective assessment of the organization's operations, controls, and processes to provide assurance to stakeholders.

A consulting engagement, on the other hand, focuses on providing advice and recommendations to improve the organization's performance but may not necessarily involve the measurement of key performance indicators.