What are some of the advantages of using an external, independent forensic accounting firm to conduct an investigation versus an internal resource?
A. When an organization discovers fraud allegations, there may be a tendency to react “emotionally” rather than “objectively”. Allegations are just that—they are not substantiated facts. Confronting an employee who is alleged to have committed fraud or terminating them without having conducted a proper investigation and seeking appropriate legal advice, could lead to bigger issues for the organization, including unnecessary and costly lawsuits. Accordingly, retaining an independent forensic accountant removes the emotions and brings an objective state of mind, focusing on the facts and allegations. A fraud can also distract employees from focusing on their primary duties, possibly resulting in further adverse financial consequences for the company. Finally, if a matter is expected to proceed to trial or other legal proceeding, a report prepared by an internal employee may be perceived as biased and lacking objectivity. Keep in mind that the work performed by an internal resource may be
