When might a fraud examiner refer a case to law enforcement?

A fraud examiner typically refers a case to law enforcement when there is evidence suggesting criminal activity that requires legal intervention. This occurs when the findings of an investigation indicate that the actions taken by an individual could constitute a violation of criminal law, such as theft, embezzlement, or fraud. It is essential for fraud examiners to act within their ethical and professional boundaries, which means recognizing that certain situations involve legal implications beyond their expertise.

In instances where there is substantial evidence pointing to criminal actions, it becomes necessary to involve law enforcement to pursue further investigation, apprehend suspects, and possibly prosecute those involved. This ensures that legal frameworks are followed and that justice can be served appropriately.

The other options do not adequately meet the criteria for referral to law enforcement. Minor irregularities typically do not warrant criminal intervention as they may be resolved through internal controls or organizational policies. Waiting until the examination is complete may be too late if immediate action is required to prevent further harm or loss. Lastly, an admission of wrongdoing does not always equate to sufficient evidence for law enforcement; a thorough investigation might still be necessary to corroborate such statements before involving legal authorities.