Which of the following actions indicates a lack of due professional care by an internal auditor performing an audit of a store’s cash function?

Which of the following actions indicates a lack of due professional care by an internal auditor performing an audit of a store’s cash function?
A . The audit report included a well-supported recommendation for a reduction in staff even though such a reduction might adversely impact morale.
B . The auditor tested samples of transactions to test the cash function’s process flows.
C . After determining that the cash function internal controls were strong, the audit report assured senior management that fraud was not present.
D . The auditor discovered an instance of potential fraud and reported it immediately to management, but did not alert authorities outside the organization.

Answer: C

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