Investigation Memo & Case File Flashcards
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Read the first 7 Investigation Memo & Case File flashcards as text
An organization's general counsel instructs the fraud examiner to share the complete investigation case file with external auditors. What should the examiner do first?
Answer: Assess whether sharing would waive attorney-client privilege or work-product protections and confirm the instruction in writing
Sharing a privileged case file with third parties can waive privilege, so the examiner must assess the legal risk and obtain written authorization before proceeding.
During a fraud investigation, an examiner prepares an interim status memo for the audit committee. Which of the following should be EXCLUDED from that memo?
Answer: Speculation about the ultimate monetary loss before analysis is complete
Speculative loss figures in interim memos can mislead decision-makers and may be used out of context if litigation follows; only confirmed findings should be reported.
A fraud examiner is asked to reconstruct destroyed financial records as part of the investigation. Notes from this reconstruction effort belong in the case file under which category?
Answer: Analytical work papers documenting methodology and assumptions
Reconstruction work is analytical in nature and must be documented in work papers that detail the methodology, assumptions, and limitations so the work can be reviewed and challenged.
When multiple investigators contribute to a single case file, which practice best ensures consistency and integrity of the documentation?
Answer: A designated file custodian enforces a uniform naming convention, access log, and version control protocol
A designated custodian with enforced naming conventions, access logs, and version control prevents duplication, unauthorized changes, and gaps in the record.
A subject of a fraud investigation requests a copy of the investigation file under a freedom of information law. The organization's attorney advises the file is protected. What is the most likely protection being asserted?
Answer: The attorney work-product doctrine, which shields materials prepared in anticipation of litigation
The attorney work-product doctrine protects documents prepared by or for counsel in anticipation of litigation from disclosure to adverse parties.
A case file contains an email chain that is highly relevant to the fraud but also contains a separate, unrelated attorney-client communication. What is the correct handling of this mixed document?
Answer: Consult with counsel to determine whether to redact the privileged portion or treat the entire document as privileged
Mixed documents with both privileged and non-privileged content require legal guidance on redaction to preserve applicable protections without suppressing relevant evidence.
After an investigation concludes with a referral for criminal prosecution, how long should the organization generally retain the complete case file?
Answer: Through the end of any resulting criminal or civil proceedings, plus the applicable statute of limitations period
Case files must be retained through all proceedings and the relevant limitations period because they may be needed as evidence or to respond to future claims.