Which of the following is NOT considered a conflict of interest that is prohibited under the ACFE Code of Professional Ethics?
A.
Accepting an assignment to secretly infiltrate the fraud examiner's employing organization and transmit inside information to another party
B.
Undertaking an engagement that decreases the fraud examiner's ability to perform their duties for their full-time employer
C.
Accepting an assignment to evaluate the anti-fraud controls at an organization in which the fraud examiner is a shareholder, provided the fraud examiner's ownership interest is disclosed
D.
Undertaking engagements for both sides in a case of alleged vendor overbilling
The ACFE Code of Professional Ethics prohibits any engagements that impair the fraud examiner's objectivity, even with disclosure.
Ownership interests in a client organization create significant potential for bias, compromising the integrity of the evaluation.
Analysis of Other Options:
A. Secret infiltration:This is a clear ethical violation.
B. Engagements reducing employer duties:This constitutes a conflict of interest.
D. Representing both sides:Prohibited under the ACFE Code due to conflicting responsibilities.
Conclusion:Option C is a prohibited conflict of interest under the ACFE Code.
[References:ACFE Code of Professional Ethics and conflicts of interest guidelines​​., , , ]
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