John Ambre has just accepted a forensic investigative engagement.Which of the following should be the first step to be taken by John?
A) Create a fraud hypothesis.
B) Confirm the reasonableness of the suspicions of fraud.
C) Conduct interviews and gather relevant data and evidence.
D) Test and refine the fraud hypothesis via financial statements analysis.

Question

Quizplus · Accepted Answer

Before proceeding with any investigations, it is important to confirm the reasonableness of suspicions of fraud. This helps in making sure that the investigation is conducted with a clear objective and purpose, and that resources are being allocated appropriately. Once reasonable suspicion has been confirmed, the investigator can move forward with conducting interviews, gathering relevant data and evidence, creating a fraud hypothesis, and ultimately testing and refining that hypothesis through financial statements analysis.

John Ambre Has Just Accepted a Forensic Investigative Engagement