Weekly Wrap – 13th November 2013


0:48 – Example of poor basis to determine whether to commence fraud investigation

1:13 – Investigation decision should be based on the facts

1:19 – Investigation decision shouldn’t be based on personality


Hi I am Tom McLeod, Managing Consultant of McLeod Governance.

This is what I would be thinking about this week.

How do you determine when you will investigate a fraud?

A couple of days ago I was reading  the newspaper and came across an article about a particular country’s – which I will not name – agency that polices serious corporate fraud.

The manager of that agency was quoted directly as such

Especially when you are talking about large corporations, the suspects are very smart people and incredibly litigious, so we look at that from the outset.

This is one of the most appalling basis upon which you would ever determine whether to commence a fraud investigation.

Now the purpose of today’s post is not to criticise – any more than I just have – the particular agency, but more so I want to challenge you as to what basis you determine whether a fraud investigation should be commenced.

Is it based on the facts?

The seriousness of the facts?

The quantum of the facts?

Or is it based on the personality of the people involved?

Do you not commence a fraud investigation because you may upset some people?

Do you not commence a fraud investigation because you think that they are smarter than you?

Do you not commence a fraud investigation because you think that they may be litigious in time?

So the challenge today for you and all those that are confronted with an allegation of fraud within their organisation is – what is the framework by which you determine whether an investigation should commence?

And if it is similar to that which I have just previously presented my recommendation to you would be to reconsider your framework.

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