CS Professional · Internal and Forensic Audit · Basic Concepts of Forensic Audit
A forensic auditor investigating Ganga Steels Ltd. interviews the accounts head, who orally admits to booking fictitious vendor invoices. The auditor wants the admission to be usable later. Which course of action best strengthens its evidentiary value?
The best course is to record the interview with a witness present, prepare a written statement, and obtain the interviewee's voluntary signature after reading it back. Voluntariness and a contemporaneous record support reliability, whereas threats, inducements or reliance on memory make the admission open to challenge.
- ARely on memory and mention it verbally to the board
- BRecord the interview with a second team member present, prepare a written statement, and obtain the interviewee's voluntary signature after reading it backCorrect
- CPromise the interviewee protection from any legal action in exchange for a signature
- DObtain the signature after informing him that refusal will lead to dismissal
Explanation
A contemporaneous written record, witnessed and voluntarily signed, supports reliability. Inducement, threat or promise can make a statement involuntary and open to challenge, so the last two options damage its value, and memory-based reporting has little weight.
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