Which of the following describes the greatest benefit of using forensic auditing techniques in this scenario?

An internal auditor discovered fraud while performing an audit of an organization’s procurement process.

Which of the following describes the greatest benefit of using forensic auditing techniques in this scenario?
A . Enhanced capability to prevent frauds from occurring.
B . Greater assurance that procurement frauds will be detected in a timely manner
C . Improved capability of evaluating fraud risks within the organization.
D . Greater understanding of fraud through better evidence collection

View Answer

Answer: D

Explanation:

The greatest benefit of using forensic auditing techniques when fraud is discovered in an organization’s procurement process is achieving a greater understanding of fraud through better evidence collection. Forensic auditing techniques are specialized procedures designed to collect, analyze, and evaluate evidence in a way that meets the standards of a legal process, which is crucial for understanding the mechanisms of fraud and potentially pursuing legal actions.

Reference: Forensic auditing practices and literature on fraud investigation techniques.