What should a fraud examiner do upon realizing a perceived impairment of independence?

When a fraud examiner becomes aware of a perceived impairment of independence, the appropriate response is to inform management and take action. This step is critical because independence is a cornerstone of a fraud examiner's role, ensuring objectivity and integrity in the examination process. By openly addressing any perceived impairment, the examiner helps maintain trust in the findings and results of the investigation.

Taking proactive measures not only adheres to ethical standards but also aligns with professional guidelines, which may require disclosure of any conflicts or impairments that could affect the examination's outcome. This transparency helps in reaffirming the credibility of the examination process and safeguarding the overall integrity of the organization.

Maintaining confidentiality could lead to a lack of accountability and potentially allow issues to fester unaddressed. Ignoring the impairment compromises the integrity of the work being performed and might ultimately harm the organization's interests. Delaying reporting could allow the situation to worsen or create further complications, undermining the examination’s effectiveness. Therefore, promptly informing management and addressing the impairment fortifies the examination's integrity and upholds professional standards.