Under what circumstances would internal audit not become involved when intentional misconduct is suspected?
Under what circumstances would internal audit not become involved when intentional misconduct is suspected?
Internal audit would not become involved when intentional misconduct is suspected if management is running a parallel investigation. This is because it might lead to duplication of effort, and it ensures that the investigation is managed within the same line of authority and control, reducing possible confusion or conflict of interest.
can anyone explain please!?
I consider that duplication of effort should be avoided and that the CAE focus should be limited to assessing Internal Control. There is also a risk of independence, as the CAE hierarchically depends upon the CEO.