If the internal audit activity is not primarily responsible for conducting fraud investigations and should refrain from involvement in them, it would still be considered acceptable for internal auditors to evaluate the effectiveness of fraud investigations. This role aligns with the audit's function of providing independent assurance on the effectiveness of risk management and control processes within the organization.
IIA standards on the role of internal auditing in fraud risk management, which specify that internal auditors may assess the effectiveness and contribute to the improvement of fraud detection and investigation processes.

The IIA Code of Ethics states that integrity is fundamental and describes behaviors such as honesty and responsibility. In this scenario, being completely honest with operational management about unfavorable audit results exemplifies the principle of integrity.
The Institute of Internal Auditors (IIA) "Code of Ethics", which details the principles and expectations for the professional practice of internal auditing, including integrity as a key principle.

Organizational independence of the internal audit activity is best demonstrated when the CAE reports functionally to the highest levels within the organization, such as the CEO or directly to the board. Functional reporting involves matters such as audit plans, frequencies, reporting, and budgeting, and it is crucial for ensuring that the internal audit function has the necessary authority and independence from management, which could influence their activities.
Institute of Internal Auditors (IIA) - International Standards for the Professional Practice of Internal Auditing Top of Form

The job responsibilities of the warehouse employee, where the same individual is responsible for receiving goods and distributing materials and spare parts, compromise segregation of duties. This lack of segregation poses a significant fraud risk because it allows a single individual to control multiple aspects of the inventory process, increasing the opportunity for misappropriation or manipulation of inventory without adequate checks or oversight.
Institute of Internal Auditors (IIA) - International Professional Practices Framework (IPPF), Practice Guide:
Assessing Fraud Risks

On-the-job training is more effective when it includes ongoing feedback and coaching from experienced team members. This hands-on approach provides real-time learning and adaptation, which can enhance the practical skills of the participants effectively. Feedback and coaching help in correcting mistakes and improving performance iteratively, making the training process dynamic and directly relevant to the work environment.
Best practices in on-the-job training methodologies.