Internal Fraud Investigation: The First Five Days

The decisions made in the first few days after internal company fraud has been detected will be a major determinant of the matter’s outcome. Poor decisions during that period can open you up to criticism for doing too little or too much, and they may result in either failure to identify a potential issue before a governmental investigation or litigation, or spending too much in money and resources chasing baseless allegations. Erick O. Bell, a managing director with StoneTurn Group, outlines key actions that should occur within the first five days of receiving an allegation, in order to secure evidence, organize resources, and evaluate the substance of the allegation.