Certified Information Systems Auditor 2025 – 400 Free Practice Questions to Pass the Exam

When fraud is suspected after an initial investigation, expanding activities to determine whether a more thorough investigation is warranted is essential because this allows the auditor to gather additional evidence and assess the situation comprehensively. This approach is critical for understanding the extent of the potential fraud and determining its impact on the organization.

By expanding their activities, the IS auditor can perform additional procedures, such as examining more records, interviewing involved personnel, and analyzing transactions in greater depth. This thorough investigation ensures that no aspect of the potential fraud is overlooked and provides a clearer picture of the situation.

Taking such steps also follows the professional standard of care and due diligence, ensuring that the auditor acts responsibly and ethically in light of the serious implications of suspected fraud. Once sufficient information has been gathered, the auditor can then make informed recommendations on subsequent actions, including whether to escalate the matter to management or appropriate external authorities.

Communicating this suspicion to senior management or finalizing an audit report without adequate verification may not properly address the gravity of the situation and can result in significant repercussions for the organization if fraud is indeed occurring.