Reference no: EM132997728

Problem - Willa Stanley is the new CAE for Argo Manufacturing Company. Argo has an internal audit staff of 50 auditors and 5 support personnel. In general, the audit department performs 40-50 assurance engagements per year. The audit committee and senior management have advised that they would like the internal audit department to perform more advisory engagements insofar as Argo has paid millions of dollars to outside advisors to perform these services. Please answer the following questions:

1. Before undertaking a particular assurance engagement, what factors are important for Willa to consider?

2. Argo is strengthening its risk management efforts this year. Give an example of how internal auditing can participate in the risk management process from 1) an assurance perspective and 2) an advisory perspective. What roles are internal auditors not allowed to participate in from 1) an assurance perspective and 2) an advisory perspective?