Utilizing an external fraud specialist in a suspected fraud investigation offers several advantages, particularly in preserving evidence and maintaining the chain of command. This is crucial for ensuring that the investigation is conducted legally and that any findings can be used in potential legal proceedings.
Detailed Explanation:
Expertise in Evidence Handling:
External fraud specialists typically have specific expertise in collecting, preserving, and documenting evidence in a manner that maintains its integrity. This includes maintaining a proper chain of custody, which is essential for legal admissibility.
IIA Practice Guide on Fraud Investigations:
The IIA suggests that involving specialists can enhance the credibility and effectiveness of an investigation. Specialists are trained to handle sensitive evidence and ensure that it is preserved correctly, reducing the risk of contamination or loss.
Chain of Command:
Maintaining a clear and secure chain of command during an investigation is critical. An external specialist is often better equipped to manage this process, ensuring that evidence is not tampered with and that all actions are documented appropriately.
Why Not Other Options?
Option A (Increased access to employees): While an external specialist may interview employees, this is not their primary advantage over internal auditors.
Option C (Increased ability to scrutinize processes): Specialists are skilled at this, but the key advantage lies in evidence preservation.
Option D (Increased access to software and data): Access to proprietary data is important, but internal auditors usually have this access as well.