During an Audit, an Employee, Who Does Not Want to Be

question 446

Multiple Choice

During an audit, an employee, who does not want to be identified, offers to provide information that would be damaging to the organization and may concern illegal activities. Which of the following actions by the auditor would not be consistent with the IIA Code of Ethics and Standards?

• A) Promising to maintain the employee's anonymity and listening to the information.
• B) Suggesting that the employee consider talking to legal counsel.
• C) Informing the employee that an attempt will be made to keep the source of the information confidential while looking into the matter further.
• D) Informing the employee of other methods of communicating this type of information.

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Definitions:

Type I Error

The incorrect rejection of a true null hypothesis, also known as a "false positive".

F-test Statistic

A ratio of two variances that follows an F-distribution, used to compare statistical models or test hypotheses about the equality of variances.

Larger Sample Variance

Refers to a greater dispersion or spread of a set of sample data points from their mean, compared to another set of data points.

F-test

A statistical test used to compare the variances of two populations and is based on the F-distribution.