How the Fair Credit Reporting Act Affects Audits and Other Investigations
- Topics:
- Audits
- Tags:
- Audit,
- Certified Public Accountant,
- Human Resources,
- Investigation,
- Termination,
- Workforce Management
- Source:
- The CPA Journal
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Overview: The Fair Credit Reporting Act (FCRA), as interpreted by the FTC, undermines the effectiveness of outside investigations, due to various requirements. In sum, FCRA requirements stifle the ability of outside investigators to thwart employee misconduct by providing the opportunity for wrongdoers to cover their tracks. The FCRA also puts limits on certain procedures performed by auditors, especially those related to complying with SASs 54 and 82. Employers that conduct such investigations have faced charges of defamation, invasion of privacy, intentional infliction of emotional distress, and wrongful termination actions filed by employee’s accused of occupational fraud and abuse. Now employers and outside experts, including auditors and forensic accountants, could face a new hurdle: potential liability for failure to comply with the Fair Credit Reporting Act (FCRA). This article also explains the how vail letter affects employee misconduct investigations.
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Format: HTML | Date: Jan 2003 | Pages: 1
