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Opinion 2.1

When communicating the results of a fraud examination, the fraud examiner is responsible for providing clear, accurate, and unbiased reports reflecting the fraud examination results. This need arises from the possibility that such results might end up being read or used by various groups of people, such as organization insiders, attorneys, defendants, plaintiffs, witnesses, juries, judges, and the media (ACFE, 2022).

In the report, the CFE says, "Here are the facts.” Someone other than the examiner will read the report and make a decision. The CFE's responsibility is to provide the evidence needed to make that determination. Guilt or innocence is a legal determination made in the criminal justice system. CFEs cannot declare anyone guilty of anything. However, they can present facts based on evidence and they can explain to the reader that if these facts are proven, they could constitute a violation of the law (Gill, 2021)

Article five of the ACFE Code of Professional Ethics prohibits opinions regarding the guilt or innocence of any person or party. Determining whether a person is guilty or innocent of a crime is not a decision for fraud examiners; it is a decision that is reserved for a judge or jury. An ACFE member, in conducting examinations, will obtain evidence or other documentation to establish a reasonable basis for any opinion rendered. No opinion shall be expressed regarding the guilt or innocence of any person or party. This rule is a rule of prudence. Clearly, it is prudent for a fraud examiner to refrain from usurping the role of the judge or jury. In a courtroom, no good attorney would ask a fraud examiner for such a conclusion, and no alert judge would allow such testimony. The fraud examiner’s job is to present the evidence in their report. Such evidence might constitute a convincing case pointing to the guilt or innocence of a person (ACFE, 2022).

Section V- Standards of Reporting, from the CFE Code of Professional Standards, states that no opinion shall be expressed regarding the legal guilt or innocence of any person or party. Standard III.C.2 permits CFEs to draw reasonable conclusions in a fraud examination if those conclusions are supported by evidence that is relevant, competent, and sufficient. However, this Standard, which is taken directly from Article Five of the ACFE Code of Professional Ethics, makes clear that those conclusions may not include the CFE’s opinion regarding the legal guilt or innocence of any person or party (ACFE, n.d.).

The reason for this rule is to prevent the CFE from inserting themselves into the role of the judge or jury. The CFE’s job in a fraud examination is to present evidence and draw reasonable conclusions from that evidence. But the CFE should draw a clear line between a report that essentially says, “Here is the evidence and the conclusions that can be drawn from it,” and one that steps over the line and says, “Suspect A is guilty of committing fraud” (ACFE, n.d.).

Presuming that the evidence supports those elements, the CFE would be permitted to draw conclusions that a suspect made a material false statement, that the suspect knew the statement was false, that the victim relied upon the suspect’s statement and that the victim suffered harm as a result. All of these conclusions focus on the conduct of the suspect or the victim and could be reasonably supported by the facts of the case. But this is where the CFE’s conclusions must stop. They are not permitted to then give the opinion that the suspect is guilty of the crime of fraud because that decision must be left to the judicial system (ACFE, n.d.)