Maintaining chain of custody is one of the most important elements for making sure evidence stays legitimate. Normally, the chain begins, and is recorded, once the evidence is discovered by someone in the legal system (eg, police, prosecutor, etc). What about chain of custody before someone from the legal system discovers the evidence? If the evidence passes through several hands first, does that invalidate the chain of custody? Can you think of a way for chain of custody to be broken after discovery by someone in the legal system, and the evidence is still legitimate? Know of an example?
The fourth amendment to the US Constitution protects people from unreasonable search and seizure of their property. But most fraud, especially as discussed in this class, takes place at the workplace. How does the fourth amendment work in the workplace? Does the employee have any protection from it? What about if items fraudulently obtained are in the fraudster’s home? Are there any protections? What if the items fraudulently obtained have been sold and the cash is now in a bank account belonging to the fraudster? Any protections?
Part of the auditor’s requirement is to classify the audit client as either safe or risky. Why should an auditor accept or keep a client which is classified as high risk?