Consulting Services

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  • #226412

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    This forum is restricted to members of the associated course(s).

    Shoaib Ahmed
    Participant

    “The internal audit activity may provide assurance services where it had previously performed consulting services, provided the nature of the consulting did not impair objectivity and provided individual objectivity is managed when assigning resources to the engagement.”

    Can you please provide the examples where consulting service  does not impair objectivity and individual objectivity is maintained?

    “An internal auditor can make recommendations to a department as part of a consulting engagement and still be objective in a future financial audit of that same department.”

    Can you please provide some examples of that?

    “A strong QAIP will help ensure that organizational independence and objectivity are part of the culture of the IAA.”

    How QAIP will ensure organisational independence and objectivity?

     

     

     

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  • #226440

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    Brian Hock
    HOCK international

    “The internal audit activity may provide assurance services where it had previously performed consulting services, provided the nature of the consulting did not impair objectivity and provided individual objectivity is managed when assigning resources to the engagement.”

    Can you please provide the examples where consulting service  does not impair objectivity and individual objectivity is maintained?

    If last year the IAA provided a consultancy service to a department about best practices in manufacturing efficiencies and eliminating waste in the manufacturing process, then this year, they can perform an assurance engagement about the internal controls in that department and if they are working properly. 

    “An internal auditor can make recommendations to a department as part of a consulting engagement and still be objective in a future financial audit of that same department.”

    Can you please provide some examples of that?

    The same example above. The key is that the IAA cannot perform an assurance engagement on an area that they created or developed. They cannot provide assurance connected to the work that they themselves did.

    “A strong QAIP will help ensure that organizational independence and objectivity are part of the culture of the IAA.”

    How QAIP will ensure organisational independence and objectivity?

    If they have a good QAIP, they will most likely have the organizational independence and objectivity because the QAIP is going to help them be in compliance with all of the standards and guidance for an IAA. And since organizational independence and objectivity are part of the Standards, the QAIP will help ensure that these are part of the culture of the IAA. It will be discussed and checked throughout the year , and that constant presence of it will help it become part of the culture.

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