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CS Professional · Internal and Forensic Audit · Emerging Issues and Challenges

While auditing Vishwa Steels Ltd, an internal auditor receives an anonymous complaint that the plant head takes kickbacks from a scrap buyer. Which is the most appropriate first course of action?

The auditor should escalate the complaint to the audit committee or the designated vigil mechanism authority and preserve evidence before any inquiry. This protects confidentiality and evidence integrity and ensures a fair process, whereas confronting the suspect or ignoring the complaint would harm the investigation.

  1. AConfront the plant head immediately and demand a confession
  2. BReport the matter to the audit committee or designated authority and preserve evidence before any inquiryCorrect
  3. CIgnore it because anonymous complaints have no value
  4. DPublish the allegation in the internal newsletter

Explanation

Allegations involving senior staff should be escalated to the audit committee or the vigil mechanism authority, with evidence preserved and confidentiality kept. Confronting the person early risks tampering and unfairness. Ignoring or publicising the claim is improper.

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