Guidelines need to be set for various levels of suspected fraud within an organization and when it would be reported to the audit committee. Which of the following would be
reported at the next meeting?
A.
Minor theft of less than $10,000, not involving senior management.
B.
Theft using collusion for more than $10,000. but not involving senior management.
C.
Denial of access to requested employees during an audit.
D.
Discussion of replacement of the chief audit executive.
Fraud involving significant amounts, such as theft using collusion for more than $10,000, should be reported to the audit committee at the next meeting. This type of fraud indicates a higher level of risk and potential impact on the organization, which makes it critical for the audit committee to be informed promptly so that appropriate measures can be taken.
Guidelines on fraud reporting from the Institute of Internal Auditors
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