Week 6 Topic 2.docx - Fraud can occur in any company ...

Fraud can occur in any company, causing significant financial impact even in firmly
established businesses (Kolman, 1999). “The Association of Certified Fraud Examiners (ACFE)
estimates that the average business loses approximately five percent of its annual revenue to
internal fraud, waste and abuse”( Association of Certified Fraud Examiners (ACFE), 2016, par.
1). Once the fraud investigation is complete, the examiner writes a formal report.
The fraud report plus expert opinions and testimonials are then used as needed to support
the resolution of any issues that may be related to tax, employment, regulatory reporting,
litigation, and insurance claims. Because the report is used for such important purposes, it
must be prepared on the assumption that it will be challenged in court. This requires the
report to meet very high standards; Any errors or inaccuracies in the report can be used to
undermine the credibility of both the report and the researcher who wrote it (Central