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CS Professional · Internal and Forensic Audit · Audit and Investigations

An investigator at Ganga Infra Ltd. has completed fieldwork on suspected diversion of funds. Interviews and documents show loss of ₹48 lakh, but one key bank statement could not be obtained because the bank refused access without a court order. How should the investigator treat this in the report?

The report should present findings backed by evidence and clearly disclose the scope limitation from the missing bank statement and its possible impact. Estimates must not be shown as fact, and omitting the limitation or withholding the entire report would be improper and unhelpful.

  1. AOmit the matter since the statement was unavailable
  2. BEstimate the missing amount and report it as established fact
  3. CReport findings supported by evidence, and clearly disclose the scope limitation and its possible effectCorrect
  4. DWithhold the whole report until the statement is obtained

Explanation

A report should state only what evidence supports and transparently disclose limitations such as inaccessible records, indicating what could be affected. Presenting estimates as fact is misleading, and omitting or withholding the report undermines timely decision-making.

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