What is the primary purpose of an investigation in fraud examination?

The primary purpose of an investigation in fraud examination is to determine whether fraud has occurred. This involves systematically analyzing various elements and indicators that suggest fraudulent activity within an organization. Fraud examination seeks to gather information and evidence that will help clarify the presence or absence of fraud, including fraudulent intent, mechanisms, and impacts.

While gathering evidence for legal proceedings, analyzing financial transactions, and assessing company policies are important aspects of a comprehensive investigation, they are often components that support the main goal of identifying fraud. The ultimate objective revolves around establishing whether fraudulent actions have taken place, which will inform subsequent actions, including legal measures, policy revisions, or remedial steps to mitigate future risks. Understanding this core purpose is essential for professionals in the field, as it shapes the direction of the investigative process and the methodologies employed.