Skip to content

CS Professional · Internal and Forensic Audit · Basic Concepts of Forensic Audit

A forensic auditor engaged by Rao Steels Ltd. to investigate a procurement fraud is later offered, by the same company, a long-term consultancy to design and run the very procurement controls she reviewed. Which concern is most directly raised?

The main concern is a self-review threat to independence and objectivity. If she designs and runs the controls she investigated, she would later be judging her own work, which can undermine the credibility of her findings.

  1. ASelf-review and independence threat that could impair objectivity in future assignments and in the credibility of her findingsCorrect
  2. BBreach of confidentiality, since she must not accept any later work from the same client
  3. CLack of competence, since forensic auditors cannot understand controls
  4. DViolation of the rule that forensic work must be completed within one financial year

Explanation

Designing and operating controls she has assessed would mean reviewing her own work, creating a self-review threat to independence and objectivity. Confidentiality is not breached by later work, and no rule limits forensic work to one year.

Did you get it right without looking?

One question tells you little. A timed set on Basic Concepts of Forensic Audit shows your real accuracy, how long you take and where you lose marks.

Practise Basic Concepts of Forensic AuditFree diagnostic mock

More Basic Concepts of Forensic Audit questions