Final answer:
Internal auditors' consulting services should align with their charter to maintain authority and uphold independence and objectivity. They must communicate relevant information broadly within the organization, and manage any potential conflicts of interest to maintain the integrity of their role.
Step-by-step explanation:
The question relates to the role of internal auditors in providing consulting services that enhance an organization's operations. Regarding the question, the correct answer is A. Internal auditors’ provision of consulting services should be consistent with the internal audit activity's empowerment reflected in the charter. This means that while auditors can add value through consulting, they must do so within the scope of authority granted by their charter and maintain the mandatory principles of the internal auditing profession, such as independence and objectivity.
Importantly, even when providing consulting services, internal auditors retain their responsibility to communicate relevant information to all necessary parties within the organization, not just the engagement client. Thus, option B is incorrect because the responsibility to communicate extends beyond the engagement client. Option C is also incorrect because consulting services can generate assurance in the broader sense of improving processes, although they are not assurance engagements per se. Lastly, option D is inaccurate since internal auditors are expected to uphold their objectivity in both assurance and consulting roles; however, if actual conflicts of interest arise, they should be managed according to the organization's policies and the alignment with ethical principles.