Teaming with Forensic Accounting Investigators
Erik Skramstad · 2012
This chapter focuses on one of the key decisions about the degree to which the forensic accounting investigators can work with and rely on the work of internal and external auditors. Management, audit committee, auditors and legal counsels should consider including forensic accounting investigators in the process of decision making about the fraud investigation. Outside forensic investigators are typically hired to assist internal audit conduct investigations. Teaming with internal audit enhances both the efficiency and effectiveness of the investigation. Internal audit knows the company, its personnel and systems better than outside forensic investigators and that makes the investigation more targeted. There are situations permitted by law and professional standards wherein an audit committee may retain a forensic accounting team from the external auditor's firm. Considerations in choosing the option include timing, knowledge of the company's accounts, systems, personnel and industry specifics.