CS Professional · Internal and Forensic Audit · Audit and Investigations
Before starting an investigation into suspected cash misappropriation at Kaveri Foods Pvt. Ltd., the forensic investigator is asked by the managing director to begin interviewing staff immediately. Which step should the investigator ordinarily complete first?
The investigator should first obtain a clear engagement letter or mandate stating scope, authority, access and reporting lines. Only then should evidence be gathered and interviews held. Confronting suspects or recommending dismissal first would be premature and could jeopardise the evidence and the fairness of the process.
- AConfront the suspected employee with the allegation
- BObtain a clear engagement letter or mandate defining scope, authority and accessCorrect
- CIssue the final report to the board
- DRecommend dismissal of the suspected employee
Explanation
A proper investigation begins with a defined mandate covering scope, authority, access to records and reporting lines. Confronting or recommending action before gathering evidence would be premature and could compromise the case.
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