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What is the responsibility of the internal auditor with respect to fraud?

A.The internal auditor should have sufficient knowledge to identify the indicators of fraud but is not expected to be an

expert.

B.The internal auditor should have the same ability to detect fraud as a person whose primary responsibility is

detecting and investigating fraud.

C. An internal auditor should have sufficient knowledge and training so that (s)he is able to detect fraud.

D. An internal auditor’s primary role is to detect and investigate fraud.

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Question added by MUHAMMED HARIS MI , Senior Audit Staff , Saud Bahwan Group LLC.
Date Posted: 2015/04/24
Mir Mujtaba Ali
by Mir Mujtaba Ali , Internal Audit Manager , Confidential

C. An internal auditor should have sufficient knowledge and training so that (s)he is able to detect fraud.

Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

From the IIA: “Internal auditors support management's efforts to establish a culture that embraces ethics, honesty, and integrity. They assist management with the evaluation of internal controls used to detect or mitigate fraud, evaluate the organization's assessment of fraud risk, and are involved in any fraud investigations.

 Although it is management's responsibility to design internal controls to prevent, detect, and mitigate fraud, the internal auditors are the appropriate resource for assessing the effectiveness of what management has implemented. Therefore, depending on directives from management, the board, audit committee, or other governing body, the internal auditors might play a variety of consulting, assurance, collaborative, advisory, oversight, and investigative roles in an organization's fraud management process.”

Abd ElRahman Mohammed Idris Mohammed
by Abd ElRahman Mohammed Idris Mohammed , Internal Audit Manager , Kenana Sugar Company Limited

The correct answer is (C)  An internal auditor should have sufficient knowledge and training so that (s)he is able to detect fraud.

>>>>>>>>>>>>>>>>>>>>>>>>>

Khurram Shaukat Memon
by Khurram Shaukat Memon , Academic Research Writer , Freelance Academic Research Writer

Option (C) is the representative of auditor's responsibility, with respect to fraud.

WILSON DEPALAC
by WILSON DEPALAC , assistant manager accounts , falcon pack industry llc

answer is d to detect and investigate fraud

Tariq Ali Memon
by Tariq Ali Memon , Manager Finance & Admin , Management & Development Center (MDC)

D. An internal auditor’s primary role is to detect and investigate fraud.

Md. Moshiur Rahman Sumon
by Md. Moshiur Rahman Sumon , Assistant General Manager( Corporate Finance & Head of Internal Audit) , Progressive Life Insurance Company Limited

A) is the Correct answer,,,,,,,,,,,,,,,,,,,,,,,,,,

Mona AlShaghaa
by Mona AlShaghaa , Head of Internal Governance , Bank Aljazira

Any of the three answers A, B or C could be apropriate. D is not.

While Internal Audit might play various roles including even identifying fraud cases or taking part in investigations .. it all depends on the organization's structure and overall governance and internal control framework which can be different from one company to another.

It should NOT be internal audit's primary role though which is D. It can be an addition or part of the overall role, but not primarily.

Noorul Haque Qureshi
by Noorul Haque Qureshi , Audit Manager with Bank Alfalah Ltd (current employe) Sr.TL/Sr.Manager with HBL (Previous employer)- , Bank Alfalah Ltd is one of the 6th largest Pakistani bank with 575 branches network

Answer (C) is80% relevant to explained role of internal Auditor by IIA

     

I would say that "A" is the best answer for the fact that an internal auditor is trained on basic ways in dictating fraud in an organization not necessarily being a professional as relate to criminal investigation officer or personnel.  

Wasi Rahman Sheikh
by Wasi Rahman Sheikh , WAREHOUSE SUPERVISOR , AL MUTLAQ FURNITURE MFG

Option D) IS ANSWER <<<<<<<<<<<<

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