Which of the following statements regarding an internal auditor's responsibility for detecting fraud is not correct?
A) The auditor should have sufficient knowledge to detect red flags.
B) The auditor may obtain assistance from outside experts in areas where the auditor is not sufficiently proficient.
C) The auditor should identify control weaknesses which could allow fraud to occur.
D) The auditor should detect fraud before recommending a fraud investigation should take place.

Question

Quizplus · Accepted Answer

Internal auditors are responsible for identifying red flags and control weaknesses, but they are not responsible for detecting fraud before recommending an investigation. Detecting fraud is typically beyond the scope of their responsibilities.

Which of the Following Statements Regarding an Internal Auditor's Responsibility