Ethics for Fraud Examiners Flashcards
Why have a code of ethics?
They provide more direct solutions to professional ethical dilemmas than might exist under general ethical principles
They facilitate practical enforcement and profession-wide internal discipline
They serve as a reference and benchmark for ethical guidance
What are the five principal characteristics that help differentiate professional fields from other vocations
A body of specialized knowledge acquired through formal education
Admission to the profession governed by standards of professional qualifications
Recognition and acceptance by society of professional status, and concurrent recognition and acceptance of social responsibility by the professional
Standards of conduct governing relationships of the professional with clients, colleagues, and the public
An organization devoted to the advancement of the obligations of the professional group
What is Independence of attitude ?
requires impartiality and fairness in conducting fraud examinations and in reaching resulting conclusions and judgments.
Fraud examiners must also be sensitive to the appearance of independence so that conclusions and judgments will be accepted as impartial
Fraud examiners who become aware of a situation or relationship that could impair independence, should inform management immediately and take steps to eliminate the perceived impairment, including withdrawing from the examination if necessary.
What are the eight sections of the ACFE Code of Professional Ethics?
I. Commitment to professionalism
II. Illegal or unethical conduct
III. Professional competence of assignments
IV. Lawful orders of the courts
V. Basis for opinions
VI. Confidential information
VII. Reveal material matters
VIII. Increase professional competence
What does integrity require?
Independence of mental attitude and avoidance of conflicts of interest
Subordination of desires for personal gain to the interests of clients, employers, and the public
An ability to analyze situations where no professional rules are specifically applicable and determine right from wrong
What is Libel and slander??
Libel is a written defamation of someone else’s character.
Slander is a spoken defamation.
Libel and slander can cause personal injury and subject a fraud examiner to a lawsuit for damages.
The content of a libelous or slanderous message must:
Contain words that injure another person’s character or reputation or expose him to ridicule or contempt.
Be communicated orally or in writing to other people.
Cause an actual damage to the person who is the subject of the communication.
