According to IIA standards, assurance services are expected to be included in the risk-based audit plan as they are integral to the systematic evaluation and improvement of risk management, control, and governance processes. Consulting services, however, are typically requested by management and do not necessarily follow the structured inclusion in the risk-based plan, reflecting their more flexible and situational nature.References:
The IIA's International Standards for the Professional Practice of Internal Auditing, particularly distinctions between assurance and consulting activities.

According to IIA guidance, the 'familiarity' threat to objectivity occurs when an internal auditor has a long-term business relationship with the audit client. This kind of relationship can lead to a closeness or trust that might compromise the auditor's objective assessment of the client's policies, procedures, or transactions due to a lack of critical assessment or skepticism.References: The IIA's Code of Ethics and International Standards for the Professional Practice of Internal Auditing on objectivity and conflict of interest.

The job responsibilities of the warehouse employee, where the same individual is responsible for receiving goods and distributing materials and spare parts, compromise segregation of duties. This lack of segregation poses a significant fraud risk because it allows a single individual to control multiple aspects of the inventory process, increasing the opportunity for misappropriation or manipulation of inventory without adequate checks or oversight.References: Institute of Internal Auditors (IIA) - International Professional Practices Framework (IPPF), Practice Guide: Assessing Fraud Risks

According to The IIA's Code of Ethics, the principle of integrity emphasizes the importance of honesty and fairness in the auditor's conduct. The statement that best reflects this principle is that auditors must disclose all material facts known to them that, if not disclosed, may distort the reporting of activities under review. This aspect of integrity ensures transparency and accuracy in the presentation of audit findings, crucial for the credibility of the audit function and the trust placed in it by stakeholders.References: The IIA's Code of Ethics
- Integrity

The scenario where an internal audit manager fails to disclose a conflict of interest by not revealing that the process owner being audited is a relative is a clear violation of the integrity principle outlined in The IIA's Code of Ethics. Integrity demands that internal auditors disclose all material facts known to them that, if not disclosed, may distort the reporting of activities under review or conceal unlawful practices.References: The IIA's Code of Ethics