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.
Related terms
- Engagement scope
- The defined boundaries of a fraud examination: the organisational units, time period, transaction types, and evidence sources to be examined. Scope is...
- Legal hold
- A directive from legal counsel instructing relevant people within an organisation to preserve documents, data, and physical items that may be relevant...
- 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
- The destruction, alteration, or concealment of evidence relevant to a legal proceeding. Spoliation can result in adverse inference instructions to a jury,...
Explained in
- Predication and Engagement Planning in Fraud ExaminationsA precise, falsifiable statement of the fraud scheme suspected, derived from the predication. It names the scheme type, the suspected perpetrator or group, the...