An internal auditor observes a double payment transaction on a supplier invoice during an accounts payable engagement. Which of the following steps would be the most effective in helping the auditor determine whether fraud exists?
A.
Switch the existing assurance engagement into a fraud investigation engagement.
B.
Extend the audit scope and perform additional testing of controls on other related areas.
C.
Review the prior year's transaction volume and amounts paid compared to the prior year's budget.
D.
Perform data analytics on the supplier's information, invoiced amounts, and payments performed.
Data analytics (D) is the most effective because it allows the auditor to thoroughly examine the transaction data, potentially revealing trends or other suspicious activities that could indicate fraud.
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emtofid
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