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CA Final · Advanced Auditing, Assurance and Professional Ethics · Due Diligence, Investigation & Forensic Accounting

CA Meera is appointed by the board of Orion Steels Ltd to conduct a forensic investigation into suspected diversion of funds by the finance head. Which action best reflects sound forensic practice for preserving evidence?

She should create forensic images of the relevant systems and keep a documented chain of custody. This preserves the integrity and admissibility of evidence. Letting the suspect supply copies, alerting him first or deleting emails could allow tampering or destroy evidence.

  1. AAsk the finance head to prepare copies of the relevant ledgers and emails for review
  2. BDiscuss the allegation with the finance head first to get his version before collecting any records
  3. CCreate forensic images of the relevant systems and maintain a documented chain of custody for all evidence collectedCorrect
  4. DDelete duplicate and irrelevant emails from the server to keep the dataset manageable

Explanation

Evidence must be preserved in a manner that maintains integrity and admissibility, which needs forensic imaging and a chain of custody record. Having the suspect prepare the copies or alerting him first risks tampering, and deleting emails destroys evidence.

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