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A whistleblower reveals to the chief audit executive (CAE) detailed allegations of potential fraud at the senior management level. Although the CAE has some experience in the area, she chooses to retain an external fraud expert to conduct the investigation.
When asked by the director of finance to defend the expenditure, which of the following statements represents the CAE's best response?
- A . The CAE refers to the Standards and explains that to protect her independence, she needs to remain isolated from the investigation.
B. The CAE refers to the Standards and explains that the internal audit activity must obtain competent assistance if needed.
C. The CAE refers to the Standards and explains that to protect her objectivity, she needs to remain isolated from the investigation.
D. The CAE describes the specifics of the allegation to underscore the importance of the situation and the need for expert investigation
Suggested Answer: B
Posted : 12/11/2022 12:46 am