Question

When conducting fraud investigations, internal auditors should

A. Assess the probable level of, and the extent of complicity in, the fraud within the organization.
B. Clearly indicate the extent of the internal auditors' knowledge of the fraud when questioning suspects.
C. Perform its investigation independently of lawyers, security personnel, and specialists from outside the organization who are involved in the investigation.
D. Assign personnel to the investigation in accordance with the engagement schedule established at the beginning of the fiscal year.

Answer 1

Internal auditors should assess the level of fraud, perform independent investigations, and assign personnel accordingly.

Step-by-step explanation:

When conducting fraud investigations, internal auditors should:

1. Assess the probable level of, and the extent of complicity in, the fraud within the organization. Internal auditors need to determine the severity and involvement of fraud within the organization to guide their investigation.
2. Perform its investigation independently of lawyers, security personnel, and specialists from outside the organization who are involved in the investigation. To ensure objectivity and integrity, internal auditors should conduct investigations without interference from external parties.
3. Assign personnel to the investigation per the engagement schedule established at the beginning of the fiscal year. Internal auditors need to allocate resources properly and follow the established schedule for conducting fraud investigations.