Understanding the ACFE Code of Professional Ethics:The ACFE Code of Professional Ethics requires Certified Fraud Examiners to demonstrate competence and due care in their professional services. Specifically:
Rule 2 states that CFEs must "perform all professional engagements with due diligence."
Rule 4 emphasizes that CFEs must "avoid conduct that discredits the profession or the Association."
Competence and Due Care:
Benjamin, despite his attendance at a seminar on money laundering, lacks the requisite expertise or experience in investigating complex money laundering cases. Accepting an engagement of this nature without possessing adequate training, knowledge, or resources indicates a failure to exercise due care.
The Code emphasizes the importance of competence, meaning professionals must decline engagements that exceed their expertise unless they involve qualified individuals or teams.
Violation Assessment:
By choosing to conduct the investigation alone, Benjamin disregards the ethical requirement to ensure competence and quality in professional work. This likely jeopardizes the investigation's integrity and results.
This conduct could lead to suboptimal outcomes, legal liabilities, and reputational harm, which discredit the profession, violating the ACFE ethical framework.
Conclusion:Benjamin's decision is a breach of the ACFE Code of Professional Ethics because he failed to ensure adequate preparation, skills, and resources for the engagement.
[References:, ACFE Code of Professional Ethics: Sections on Competence and Due Care., Relevant standards and case studies from "Auditor Essentials" and "Excel for Auditors," emphasizing ethical adherence in engagements., , , ]
