Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 61

According to IIA guidance, if an internal auditor suspects fraud during an assurance engagement, what should the auditor do first?

Answer options

• A. Recommend parties involved to be sanctioned in accordance with the organization's policy.
• B. Determine whether any additional audit work needs to be performed.
• C. Launch an investigation to obtain details of the fraud and parties involved.
• D. Request that the responsible process owner remediate the issue immediately.

Correct answer: B

Explanation

The correct answer is B because the auditor must first assess if more audit work is necessary to understand the situation before taking further steps. Options A, C, and D suggest actions that may be premature without a clear understanding of the fraud's nature and extent.