Which statement is true regarding the consulting services provided by the internal audit activity?

The statement that engagement services must be aligned with client expectations is accurate because consulting services provided by internal audit are designed to support and enhance the client's ability to achieve their objectives. This alignment is essential to ensure that the services are relevant, practical, and valuable to the client. Internal auditors must understand the needs and expectations of the client to deliver effective consulting services, which can include advisory services, training, or process improvement initiatives.

Effective communication and understanding between the internal auditors and the stakeholders are vital for the success of these engagements. By aligning services with client expectations, internal auditors can foster collaboration, ensure relevance to the organization’s strategic goals, and ultimately enhance decision-making processes.

In contrast, the other statements do not hold true in the context of internal audit consulting services. While internal audits may provide recommendations based on findings, these services are not mandatory and do not replace assurance engagements; both types of services can coexist and complement each other. Additionally, while client preferences can influence the approach to audits, internal auditors maintain professional responsibility and must determine the appropriate audit procedures based on risk assessment and audit objectives, rather than solely relying on client demands.