A whistle blower notified internal audit of a conflict of interest between an organization ' s employee and a major supplier. Which of the following steps should be undertaken first?
A.
Interview the employee identified by the whistleblower.
B.
Attain an understanding of the employee ' s role, responsibilities, and relationship with the supplier.
C.
Notify senior management, the board, and the external auditor about the alleged fraud
D.
Review all the orders issued to the supplier to investigate potential fraud.
The first step in addressing a notification from a whistleblower about a conflict of interest should be to gain an understanding of the employee ' s role, responsibilities, and relationship with the supplier. This step is critical before conducting interviews or notifying others, as it helps establish the context for the investigation, ensuring that further steps are informed and targeted effectively.
IIA guidance on handling whistleblower claims and conducting internal investigations.
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