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After noting some red flags, an internal auditor has an increased awareness that fraud may be present. Which of the following best describes the internal auditor’s responsibility?
A. Expand activities to determine whether an investigation is warranted.
B. Report the possibility of fraud to senior management and the board and ask them how they would like to proceed.
C. Consult with external legal counsel to determine the course of action to be taken, including the approval of the proposed engagement work program to make sure it is acceptable on legal grounds.
D. Report the matter to the audit committee and request funding for outside service providers to help investigate the possible fraud.
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