Engagement Trigger
Definition
The event, report, or observation that initiates a forensic audit engagement. Common triggers include whistleblower reports, regulatory referrals, audit anomalies, and management suspicion. The trigger defines the initial hypothesis that the engagement is designed to test.
- Common sources
- Whistleblower reports, regulatory referrals, audit anomalies
- Function
- Defines the initial working hypothesis
- Distinct from
- Predication, which formally justifies opening the case
Common questions
Does every engagement trigger lead to a full investigation?+
No. A trigger is screened first: if the underlying report or anomaly lacks enough substance to form a reasonable basis for suspicion, the matter may be closed or monitored rather than escalated into a full fraud examination.
How does a trigger differ from evidence gathered during the investigation?+
The trigger is what starts the inquiry, before any verification. Evidence gathered afterward tests whether the trigger's implied hypothesis holds up, and can support, narrow, or overturn the initial suspicion.
Related terms
- Audit Committee Referral
- A mandate from the board's audit committee to conduct a forensic investigation. Because the audit committee is independent of management, this pathway...
- Predication
- The reasonable basis that justifies opening a fraud examination. The ACFE holds that no examination should begin without adequate predication, meaning a...
- Referral Pathway
- The institutional or personal channel through which the trigger reaches the forensic auditor. Pathways include the audit committee, internal audit, external auditor,...
- Regulatory Referral
- A direction from an external oversight body such as the US Securities and Exchange Commission, the UK Financial Conduct Authority, India's Serious...
- Whistleblower
- An individual, typically an employee or former employee, who reports suspected misconduct to an internal hotline, audit committee, regulator, or law enforcement...