The Internal Auditor Is Asked to Conduct an Investigation Involving

question 348

Multiple Choice

The internal auditor is asked to conduct an investigation involving a suspected fraud. According to the Standards, which of the following statements regarding the investigation process is false?

• A) The auditor should use anonymous surveys of coworkers to assess the character and behavior of the suspect.
• B) The auditor must give consideration to the risk of unidentified co-conspirators whether indications exist or not.
• C) The auditor should not limit the collection of information by prejudging its relevance to the investigation.
• D) The auditor must consider the risk that audit procedures may inadvertently violate the rights of the suspect.

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Definitions:

Industry Averages

Statistical metrics that represent the standard or average performance, productivity, or financial health of companies within a certain industry.

Expenses

Costs incurred in the process of generating revenue, including operational costs like rent, utilities, salaries, and materials.

Sales

The process of selling goods or services in exchange for money or other compensation.

Supplier Relationship

The interaction and management of connections between a company and the businesses that supply the materials or services it uses in its operations.