Q: 7
The internal audit activity is responsible for conducting fraud investigations. A potential fraud instance was identified during an audit engagement. The chief audit executive appoints a lead investigate. Which of the following would most likely be the next step?
Options
Discussion
Makes sense to pick D-internal audit standards always stress checking for independence and no conflicts before diving into evidence or interviews. Saw similar logic in the official guide and a few mock exams. If I'm missing a detail, let me know.
Probably D here. B looks tempting if you misread, but independence checks come first for audit standards.
Why is B tempting here? D directly matches the standards. Can't start gathering evidence or interviewing until the team’s independence is checked.
C or D? Feels like C fits too since risk assessment usually happens early in fraud cases.
Honestly, IIA never makes these workflow questions easy. Its D
A is tempting but D lines up with audit practice. Always make sure your team has the right skills and no conflicts before starting an investigation. Official guide and most practice tests emphasize this step first, so pretty sure it's the intended answer.
C or D? The official guide talks about risk assessment as an early step, and that's been mentioned a lot in mock exams too. Anyone else use practice tests that put more emphasis on C?
D , biggest trap here is B but you have to confirm team independence before starting interviews.
D imo. Had something like this in a mock, and the standard is always to check team competencies and potential conflicts before getting into evidence or interviews. That's part of IIA's independence guidelines. Pretty sure D nails it, but open to corrections if I'm missing context.
B tbh, usually you'd start talking to witnesses asap in many fraud cases after the lead's chosen. I've seen a similar step order in some practice tests and official study guides.
Be respectful. No spam.