Q26
Single choice
An internal auditor conducted a surprise inventory count at a warehouse of a small subsidiary. By the end of the count, it became apparent that a few items from several categories were missing. The warehouse manager explained that he took those items for personal needs, and he said that he would provide information about other employees' wrongdoings to avoid being reported. The auditor agreed not to report the issue, which ultimately enabled her to uncover more significant losses.
Which of the following statements is true regarding this situation?