What is the expectation of fraud examiners regarding knowledge of the law?

Fraud examiners are expected to possess a solid understanding of relevant laws as part of their professional responsibilities. This knowledge is crucial because it enables them to effectively investigate, evaluate, and report on potential fraudulent activities while ensuring compliance with legal requirements. Familiarity with laws, such as those pertaining to fraud, employment, privacy, and criminal justice, allows examiners to navigate the complexities of investigations appropriately.

Moreover, fraud examiners must recognize the limits of their expertise and know when it is necessary to seek legal counsel. This is particularly important when legal interpretations or advice are needed, such as in matters involving potential litigation or regulatory actions. Understanding the significance of legal frameworks in the context of their investigations helps examiners avoid actions that could lead to legal missteps or jeopardize the integrity of their findings.

Options that suggest avoiding legal matters altogether or relying solely on clients for legal advice do not acknowledge the importance of a fraud examiner's active role in understanding and applying relevant laws. Additionally, restricting knowledge to financial regulations is insufficient, as fraud can span various legal domains. Consequently, the expectation is for fraud examiners to be informed and proactive regarding the law, ensuring their work is legally sound and professionally responsible.