Question

Which of the following statements is false?

A. Internal audit consulting enriches value-adding internal auditing.
B. A disciplined, systematic evaluation methodology is incorporated in each internal audit activity. The list of services can generally be incorporated into two broad categories of assurance and consulting.
C. Assurance and consulting are mutually exclusive and do preclude other auditing services such as investigations and nonauditing roles.
D. Many audit services will have both an assurance and consultative role.

Answer 1

Statement C is false. Assurance and consulting are not mutually exclusive and do not preclude other auditing services.

Step-by-step explanation:

Statement C is false. Assurance and consulting are not mutually exclusive and do not preclude other auditing services such as investigations and nonauditing roles.

Internal audit consulting enriches value-adding internal auditing. This means that consulting services provided by internal auditors can enhance the overall value and effectiveness of internal auditing.

A disciplined, systematic evaluation methodology is incorporated in each internal audit activity. This means that internal auditors follow a structured approach to evaluate and assess the organization's operations and controls.

Many audit services will have both an assurance and consultative role. This means that certain audit services provide both assurance (e.g., providing an opinion on the reliability of financial statements) and consulting (e.g., providing recommendations for improving internal controls) aspects.