Investment fraud.

• Position: CAMICO Insurance: tip of the Month

Investment fraud in large dollar amounts is not unusual and tends to affect engagements in financial statement services, tax advice and investment advice. Due diligence and skepticism are paramount in addressing and avoiding liability. Obtain background, credit and reference checks for the client before accepting significant engagements, paying attention to the level of client Integrity and competency.

Due diligence is also essential with respect to any specific investments made on the client's behalf. If not performing the due diligence work necessary with respect to Investments, the CPA needs to make sure that someone does take responsibility for performing the work.

The longer a CPA has been associated...