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CS Professional · Internal and Forensic Audit · Audit and Investigations

Meridian Textiles Ltd. suspects its purchase manager of colluding with a vendor. The forensic auditor is appointed and, before examining any records, first meets the audit committee to agree the objectives, the scope and the reporting line for the assignment. Which stage of the forensic audit process does this represent?

This is the acceptance and planning stage of a forensic audit. Objectives, scope and reporting lines are fixed before any evidence is collected, so that later fieldwork, reporting and any testimony rest on a clearly defined mandate agreed with those charged with governance.

  1. AAcceptance and planning of the engagementCorrect
  2. BEvidence gathering through data mining
  3. CPreparation of the final report
  4. DTestifying as an expert witness

Explanation

Agreeing objectives, scope and reporting line before touching records is part of engagement acceptance and planning. Data mining, reporting and testimony come after this stage. Without the scope being fixed first, the later work could be challenged.

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