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

Several factors should be considered when determining whether to employ outside consultants during a fraud examination engagement, including company politics, the degree of expertise required, and

potential threats 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 considered:

1. Company politics: This includes assessing the internal dynamics and power structures within the company, which may influence the effectiveness of the investigation.
2. The degree of expertise required for specific tasks: Depending on the complexity and nature of the fraud, external consultants with specialized knowledge and experience may be necessary to ensure a thorough examination.
3. Potential threats of retaliation against internal investigators: If there is a risk of retaliation against internal investigators, involving outside consultants can provide an additional layer of protection and objectivity.

In summary, all of the above factors should be taken into account when deciding whether to engage outside consultants for a fraud examination.