When fraud is suspected, punt.

• Position: CAMICO insurance: tip of the Month

If fraud or misappropriation of assets is suspected, recommend in writing to the client that a fraud exam or forensic Investigation under a separate engagement be conducted by a qualified professional. If the client declines, obtain that decision in writing.

When faced with suspicion that their client may have suffered a fraud. CPAs often want to, and do, come to the rescue. But, do they have the professional competence to do so? in their eagerness to help, do they take due professional care or adequately plan or supervise their response to the fraud? And do CPAs obtain sufficient relevant data to support statements made regarding the alleged fraud? In their eagerness to help, CPAs might not have considered these general standards.

When faced with this opportunity/dilemma, CPAs should answer the...