Working Hypothesis
Definition
A precise, falsifiable statement of the fraud scheme suspected, derived from the predication. It names the scheme type, the suspected perpetrator or group, the time period, and the mechanism. Fieldwork is designed to support or refute the hypothesis.
- Context
- Fraud examination
- Derived from
- The predication
- Required elements
- Scheme type, suspect, time period, mechanism
- Property
- Falsifiable
Common questions
Why must a working hypothesis be falsifiable rather than just plausible?+
A falsifiable hypothesis can be tested against evidence and disproven if wrong, which keeps the investigation objective; a vague or unfalsifiable hypothesis risks the examiner selectively gathering evidence that seems to confirm a preconceived conclusion.
What happens if fieldwork contradicts the working hypothesis?+
The examiner revises or replaces the hypothesis based on the new evidence rather than discarding the contradicting findings, since the hypothesis is a working tool meant to guide fieldwork, not a fixed conclusion set before the investigation begins.
Related terms
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- Predication
- The reasonable basis that justifies opening a fraud examination. The ACFE holds that no examination should begin without adequate predication, meaning a...
- Scope Creep
- The unintended expansion of a penetration test beyond the agreed boundaries, either because testers follow a vulnerability chain into an out-of-scope system...
- Spoliation
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