Internal auditing is defined as an objective assurance and consulting activity.

Required

a. What is an assurance service? How does an assurance service differ from an attestation service?

b. Under what circumstances can such assurance services be provided by internal audit departments to outside parties such as company trading partners?

c. Identify two or three areas in which an outside party may desire assurance services by an internal audit department.

d. What are the competitive advantages and disadvantages of having an internal audit department provide the assurance services just identified, as compared to engaging an external audit firm to perform those services?