Final answer:
The scope of a fraud investigation dictates what will be covered and thus affects the usefulness of the fraud report by ensuring that the investigation addresses the relevant issues efficiently.
Step-by-step explanation:
The scope of a fraud investigation is fundamentally important because it outlines the boundaries and focus areas of the investigation, thereby determining which aspects of the alleged fraud are examined. The scope is established at the beginning of the investigation to guide the process.
It affects the usefulness of the resulting fraud report because it defines what the investigation will cover, which, in turn, influences the completeness and relevance of the findings presented in the report. If the scope is too narrow, significant issues might be missed; if too broad, the investigation might waste resources and time on irrelevant details.
Therefore, a well-defined scope ensures that the investigation is efficient and that the report provides valuable information to stakeholders.