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CS Professional · Internal and Forensic Audit · Audit and Investigations

Sagar Steels Ltd. engages a forensic auditor after a whistle-blower complaint on diverted funds. The auditor's report is likely to be challenged in court. Which approach is most appropriate to protect the evidential value of the findings?

The auditor should maintain a documented chain of custody for original records and preserve working papers. This shows how evidence was obtained and handled, protecting its admissibility and credibility, whereas relying on the accused's summaries, tipping off the suspect or destroying data undermines the case.

  1. ARely on photocopies and summaries prepared by the accused department to save time
  2. BMaintain a documented chain of custody for original records and preserve working papersCorrect
  3. CDiscuss preliminary findings with the suspect before collecting documents so as to obtain consent
  4. DDestroy duplicate data once the report is issued to protect confidentiality

Explanation

Evidence is credible in court only if its origin and handling can be shown, so original records should be secured with a documented chain of custody and working papers kept. Relying on documents prepared by the accused, tipping off the suspect, or destroying data weakens or compromises the evidence.

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