Which type of engagement would be the most appropriate to assess the maturity and rigor...

A due diligence engagement is specifically appropriate when management is evaluating a potential acquisition and needs objective information about the target organization before committing to the transaction. Internal audit may examine the target’s governance, risk management, controls, compliance, information systems, financial processes, and other significant exposures. Assessing the maturity and rigor of the target’s risk management process helps management understand risks that could affect acquisition value or post-acquisition integration. An operational audit generally evaluates the efficiency and effectiveness of existing organizational operations. A feasibility study evaluates whether a proposed initiative is practicable, while a risk and control self-assessment is normally facilitated with personnel responsible for the activity. Because the assessment relates directly to evaluating an acquisition target before a transaction, due diligence is the most appropriate engagement.