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Chapter 15: The Consulting Engagement (Providing Insight through…
Chapter 15: The Consulting Engagement
Providing Insight through Consulting
can be very valuable to the firm
opportunity for the auditor to diversify their skills
assist management in keeping abreast with emerging risk and controls needed
provide insight (valued input / information)
The difference between Assurance and Consulting Services
Engagement Parties
Consulting generally involves 2 parties
consulting customer
internal audit function
Assurance generally involves 3 parties
internal audit function
auditee
user
Application of Standards
Implementation Standards
assurance service are more stringent and numerous than consulting
Engagement Purpose
assurance: provide independent assessment
consultation: provide advisory, educational or fascilitation and opportunity for insight
Engagement Communication
assurance: relatively standardized and communications must include both auditee and third-party
consulting: varies based on the scope and purpose of the engagement
Types of Consulting Services
Advisory Consulting Engagements
Designed to offer advice
Advising on control design
Advising during development of policies and procedures
Participating in an advisory role for high-risk projects such as information systems development
Advising on security breaches or business continuity interruptions
Advising on certain enterprise risk management activities
Educational Consulting Engagements
educators on appropriate areas
Training on risk management and internal control
Benchmarking internal areas with comparable areas of other, similiar organizations to identify best-practices
Post-mortem analysis (lessons learned)
Fascilitative Consulting Engagements
more involved with the activity of the customer rather than just offering the necessary knowledge needed
fascilitating the organization's risk management
fascilitating management's management control self assessment
Blended Engagements
incorporate both consulting and assurance into one consolidated approach
care must be taken to ensure that neither independence nor objectivity is comprimised
Selecting Consulting Engagements to Perform
finite resource. selected based on magnitude of the associated risk or opportunity
Sources of Consulting Engagements
Annual Internal Audit Plan
Requests from Management
New or Changing Conditions