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CS Professional · Internal and Forensic Audit · Basic Concepts of Forensic Audit

Which of the following is a typical output of a forensic audit, as opposed to a routine internal audit?

A forensic audit typically produces a report detailing the fraud found, how it was carried out, the evidence trail and the quantified loss, in a form usable for disciplinary or legal action. Routine internal audit instead reports control observations and recommendations to management.

  1. AA management letter on minor control weaknesses in petty cash
  2. BA report setting out findings of fraud, the evidence trail and quantified loss, suitable for legal actionCorrect
  3. CA certificate of compliance with Secretarial Standards
  4. DAn opinion on the true and fair view of the balance sheet

Explanation

Forensic reports document the fraud, its method, the persons involved, the quantified loss and the supporting evidence for legal use. Control weakness letters are internal audit outputs, and the true and fair opinion belongs to statutory audit.

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