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CS Professional · Internal and Forensic Audit · Audit and Investigations

Meera, a forensic auditor, is investigating alleged inflated vendor invoices at Deccan Metals Ltd. She wants to gather evidence without alerting the vendor or staff involved, and to examine records before anyone can alter them. Which approach is most suitable?

She should start with a surprise document review and discreet evidence collection, and interview people afterwards. Securing records before anyone is alerted prevents concealment or alteration, whereas announcing the investigation or approaching the vendor first would give involved parties time to tamper with evidence.

  1. AAnnounce the investigation in a company-wide circular
  2. BBegin with a surprise review of documents and covert data collection, then interview people laterCorrect
  3. CInterview the vendor first to hear its explanation
  4. DAsk the accounts staff to self-report discrepancies

Explanation

Sequencing matters: secure documentary and electronic evidence first, then interview, moving from peripheral witnesses towards the key suspect. Announcing or interviewing the vendor first allows concealment or alteration of records.

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