ABSTRACT
The safe course is to assume that the suspicions are true or even worse than people believe. However, consider the source of the information on which the suspicions are based. Remember that evidence may subsequently justify an action being taken against external auditors for negligence or worse. A director of human resources argued strongly that the police should not be called when clear signs of fraud were discovered in a computer department. However, the company's claim under its fidelity policies was, quite properly, denied on the grounds that the men's previous dishonesty disqualified them from cover. There is a clear distinction between finding the facts, and the management decisions that have to be taken as a result. Deciding on the outcome of suspicions without knowing the facts is similar to signing a blank cheque. Alternatively, the manager opposing the investigation should be asked to put his instructions in writing.
