- 5 Marks
AAA – L3 – Q52 – Internal audit and outsourcing
Question
The IIA’s definition of Internal Auditing states, among others that: “Internal Auditing is an independent, objective assurance and consulting activity….”
Required:
Compare and contrast an Assurance and a Consulting Audit activity.
Answer
| Assurance audit activity | Consulting audit activity |
|---|---|
| Auditor expresses an opinion which he/she expects others to rely on in the report | Auditor reports on only facts that came to his/her attention in the assignment |
| The activity may not be performed on the basis of a contingent fee (fee based on the outcome of the assignment) | The activity may be performed on the basis a contingent fee |
- Tags: assurance activity, Audit comparison, consulting activity, IIA definition, Internal Audit
- Level: Level 3
- Uploader: Salamat Hamid