Question

Which of the following factors should be considered when determining whether to employ outside consultants during a fraud examination engagement?

a. Company politics
b. The degree of expertise required for specific tasks
c. Potential threats of retaliation against internal investigators
d. All of the above

Answer 1

When deciding on using outside consultants for a fraud examination engagement, it is important to consider company politics, the specific expertise needed, and the risk of retaliation against internal investigators.

Step-by-step explanation:

When determining whether to employ outside consultants during a fraud examination engagement, several factors should be taken into account. These include: company politics, the degree of expertise required for specific tasks, and potential threats of retaliation against internal investigators. Company politics can influence the decision as internal pressures or resistance to external review may affect the investigation. The degree of expertise required is crucial, as outside consultants might possess specialized skills that internal staff lack. Lastly, the potential for threats of retaliation against internal investigators can make outside consultants a safer option for a thorough and objective examination.