Answer (D) is correct . When an internal auditor suspects wrongdoing, the appropriate authorities within the organization should be informed. The internal auditor may recommend whatever investigation is considered necessary in the circumstances. Thereafter, the auditor should follow up to see that the internal audit activity’s responsibilities have been met (PA?1210.A2-1).
Answer (A) is incorrect because Determining the loss could alert the perpetrator of the fraud. The perpetrator could then destroy or compromise evidence.
Answer (B) is incorrect because Interviewing those who have been involved in the control of assets is part of the fraud investigation.
Answer (C) is incorrect because Identifying the employees who could be implicated in the case is part of the fraud investigation.
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