During a consulting engagement, an internal auditor identifies new risks which will impact the scope and sufficiency of the engagement audit plan. According to the Standards, the internal auditor should:

Discuss the potential impact on the scope with the client. 

Modify the scope to incorporate the new risks and continue the engagement. 

End the engagement, as the audit scope is no longer sufficient to meet the audit objective. 

Continue the engagement but highlight the impacts on the audit scope in the final report.