When Interviewing an Individual in Relation to a Fraud Investigation

question 9

Multiple Choice

When interviewing an individual in relation to a fraud investigation, which course of action should the internal auditor follow?

• A) Assure the individual that the results of the interview will remain confidential.
• B) Establish a rapport with the subject to encourage openness.
• C) Discontinue questioning once the individual has confessed to the fraud.
• D) Refrain from deviating from the list of questions prepared before the interview.

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Definitions:

Risk-Free Rate

The theoretical rate of return on an investment with zero risk, often represented by the yield on government bonds.

Call Option

A financial contract giving the option buyer the right, but not the obligation, to buy a stock, bond, commodity, or other asset at a specified price within a specific time period.

In The Money

A term describing an option contract that has intrinsic value, indicating it's profitable to exercise it.

Exercise Price

The price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying security.