When The CAE says : This Is Not Part of My Mandate !

I read with interest what the Head of Internal Audit at Nigeria Police Pension Office has said when questioned by a court about missing funds  :

" It is not part of my official mandate to report missing funds to the Auditor General's Office "

While I do not know the details of the case ,and what the  Head of Internal Audit knew or did not know at the time, this case raises the following question :

Have you faced a similar situation ? What did you do ?

Please share your experience and thoughts .