Final answer:
The best statement of internal auditors' responsibility regarding risk in a consulting engagement is to address risk consistent with the engagement's objectives while also being alert to other significant risks.
Step-by-step explanation:
When internal auditors perform a consulting engagement, the most accurate statement regarding their responsibility towards risk is: C. Address risk consistent with engagement objectives and be alert to certain other risks. This is because internal auditors are not responsible for managing risks directly; that remains the role of management. However, during their consulting activities, they should address and provide insight into the risks that are relevant to the engagement's objectives. Moreover, while the primary focus is on risks directly related to the engagement’s objectives, internal auditors must also remain vigilant for any other significant risks that may become apparent during the course of their work.
It's essential for auditors to understand the expectations of their role, which includes advising management and being accountable for advising on risks appropriately, but not for managing them. This alignment with their role ensures that they fulfill their duty as consultants without overstepping into management's responsibilities.