Which of the following statements would be IMPROPER if included in the fraud examination report of a Certified Fraud Examiner (CFE» who is also qualified as an accounting expert?
A.
"The company's internal controls were wholly inadequate to prevent this type of violation and should be remediated at the earliest possible time."
B.
"The evidence shows that expenses in excess of $5 million were omitted from the company's financial statements "
C.
"Based on statements the suspect made to me. it is my assessment that the suspect has a dishonest disposition."
D.
"From my examination, it appears that the company's financial statements were not presented in accordance with generally accepted accounting principles "
Fraud examiners mustnot opine on guilt, innocence, intent, or disposition. Reports should focus onfacts and expert conclusions within their field. The Manual stresses:
“The fraud examiner should refrain from expressing opinions as to the guilt or innocence of any person or entity. Such conclusions are reserved for the trier of fact” (Fraud Examiners Manual, Reporting section).
Options A, B, and D relate toaccounting and internal control assessments, which fall within an accounting expert’s scope. OnlyCis improper because it speculates about the suspect’s character or intent, which is outside the CFE’s role.
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