Which of the following activities is most likely to require a fraud specialist to supplement the knowledge and skills of the internal audit activity?

Which of the following activities is most likely to require a fraud specialist to supplement the knowledge and skills of the internal audit activity?
A . Planning an engagement of the area in which fraud is suspected.
B . Employing audit tests to detect fraud.
C . Interrogating a suspected fraudster
D . Completing a process review to improve controls to prevent fraud

View Answer

Answer: C

Explanation:

Engaging a fraud specialist is most likely required when interrogating a suspected fraudster. This specific activity demands specialized skills in interviewing and understanding behavioral cues that are outside the typical expertise of internal auditors. The use of fraud specialists ensures that interrogations are conducted effectively and that the information obtained is reliable, without compromising legal or ethical standards.

Reference: The Institute of Internal Auditors (IIA) – International Standards for the Professional Practice of Internal Auditing