Regulatory referral
Definition
A direction from an external oversight body such as the US Securities and Exchange Commission, the UK Financial Conduct Authority, India's Serious Fraud Investigation Office, or the EU's OLAF to investigate specific allegations. Regulatory referrals typically carry legal force, defined timelines, and mandatory disclosure obligations.
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...
- Engagement trigger
- The event, report, or observation that initiates a forensic audit engagement. Common triggers include whistleblower reports, regulatory referrals, audit anomalies, and management...
- 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,...
- Whistleblower
- An individual, typically an employee or former employee, who reports suspected misconduct to an internal hotline, audit committee, regulator, or law enforcement...
Explained in
- Engagement Triggers and Referral PathwaysA direction from an external oversight body such as the US Securities and Exchange Commission, the UK Financial Conduct Authority, India's Serious Fraud Invest...