Investigation Memo & Case File Flashcards
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Read the first 7 Investigation Memo & Case File flashcards as text
When an investigation memo contains information obtained from a confidential informant, what is the recommended approach for protecting the informant's identity in the case file?
Answer: Use a coded identifier (e.g., CI-1) and store identifying details in a separately secured, access-restricted document
Using coded identifiers with separately secured identity records protects the informant while still allowing authorized personnel to verify source credibility.
A fraud examiner's case file contains conflicting financial analyses from two different team members. What is the correct documentation practice?
Answer: Include both analyses with explanatory memos noting the differences and the resolution reached
Documenting conflicting analyses and their resolution demonstrates analytical rigor and protects the investigation from challenges of bias or incompleteness.
Under what circumstance may a fraud examiner ethically destroy documents in a case file?
Answer: When required by a court order or a pre-established, legally compliant document retention schedule that predates any litigation hold
Documents may only be destroyed pursuant to a court order or a retention schedule that was established before any litigation hold was triggered, never based on investigative convenience.
A case file memo describing a forensic accountant's analysis should be written at what level of technical detail?
Answer: Accessible to an educated layperson while still being precise, since fact-finders (judges, juries) may ultimately read it
Investigation memos must balance precision with clarity because non-expert fact-finders, counsel, and executives may all need to understand the analysis.
Which of the following is a key reason why fraud examiners should avoid making legal conclusions (e.g., 'the subject committed wire fraud') in investigation memos?
Answer: Only judges and juries are authorized to determine legal guilt, and improper conclusions can expose the examiner and client to liability
Fraud examiners report facts and evidence; characterizing conduct as a specific crime is a legal determination reserved for courts and can prejudice proceedings.
What action should a fraud examiner take if she discovers that a critical case file document has been altered after it was originally collected?
Answer: Document the alteration in a separate memo, preserve the altered document as-is, and notify legal counsel immediately
Discovering a post-collection alteration is itself significant evidence; it must be documented and preserved, and counsel must be notified to assess legal implications.
In a fraud case file, what is the purpose of a 'source document index'?
Answer: To catalog and cross-reference every piece of evidence collected with its location in the file
A source document index provides a master catalog of all evidence items with their file locations, enabling quick retrieval and ensuring nothing is overlooked.