Who is typically responsible for making corrective action recommendations following audits related to potentially fraudulent conduct?

In the context of audits related to potentially fraudulent conduct, the responsibility for making corrective action recommendations typically falls to legal counsel. This is because legal counsel possesses the expertise necessary to navigate the complex legal implications of any findings related to fraud. Their role is critical because they can advise on the legal ramifications and ensure that any corrective actions taken comply with applicable laws and regulations, thus minimizing the risk of further legal issues.

While internal auditors, operational managers, and external consultants may provide valuable insights and recommendations related to operational processes and efficiencies, they may not have the legal background required to assess the full spectrum of implications associated with fraudulent conduct. Legal counsel has the authority and knowledge to ensure that any corrective actions align with legal requirements and ethical standards in order to address the fraud risk effectively and protect the organization from future issues.