CMA Final · Cost and Management Audit · Forensic Audit
In a forensic investigation of a suspected procurement fraud, which of the following best describes the purpose of the 'chain of custody' for documents and electronic evidence collected by the forensic auditor?
Chain of custody is the documented record of who collected, held, transferred and stored each piece of evidence and when. It shows the evidence has not been altered or tampered with, which helps establish its integrity and admissibility in disciplinary or legal proceedings.
- ATo record who held the evidence and when, so that its integrity and admissibility can be demonstratedCorrect
- BTo calculate the quantum of loss suffered by the entity
- CTo assign responsibility for fraud to the department head
- DTo convert electronic records into audited financial statements
Explanation
Chain of custody is a documented trail showing who collected, handled, stored and transferred each item of evidence. It protects against tampering allegations and supports admissibility. Quantifying loss and fixing responsibility are separate objectives of the investigation.
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