Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 18

Fraud is most frequently detected by:

Answer options

• A. Following up on tips from employees or citizens.
• B. Following up on analytical review of high-risk areas.
• C. Performing periodic reconciliations over cash and other assets.
• D. Performing unannounced audits or reviews of programs or departments.

Correct answer: A

Explanation

The correct answer is A because tips from employees or citizens often provide direct insights into fraudulent activities that may not be captured through other methods. While analytical reviews, reconciliations, and audits can help identify irregularities, they may not be as effective as receiving firsthand information from those within or close to the organization.