What is a CFE?
A CFE (Certified Fraud Examiner) is a credential awarded by the Association of Certified Fraud Examiners to those that have met these minimum requirements:
What is the difference between a CFE, a CPA, an auditor, and a forensic accountant?
A CFE is one that actively works to prevent fraud and looks for it within an organization. Using specialized skills and knowledge related to criminology and financial transactions, a CFE will investigate potential crimes and interview witnesses and suspects.
A CPA is an accountant who has earned the CPA designation. In Washington State the requirements for earning the CPA are found at the Washington State Board of Accountancy. An accountant is one that works with businesses to ensure that the financial paperwork (book balancing, financial statements, etc.) are done properly (i.e., that the numbers match up). Some accountants become forensic accountants, those who specialize in reviewing financial transactions for actual or anticipated disputes or litigation.
An auditor is an accounting professional who conducts an independent examination of a company’s financial statements or records to ensure that there are no material discrepancies in the accountant’s work.
A forensic accountant is one who applies accounting principles to any financial situation that may go to litigation. Forensic simply means "suitable for court" so any work that a forensic accountant does should be suitable for the court.
Why should we hire a CFE if we've already got a CPA or Internal Auditor?
What differentiates a CFE from a CPA or an auditor is that the CFE is trained and experienced in detecting and investigating fraud, which includes collecting evidence for purposes of litigation (i.e., a CFE is prepared to go to trial). Many CPAs and auditors are not. If there is any possibility of your case going to trial, which would you prefer to have working on the case?
According to the ACFE’s 2024 Report to the Nation, only 14 percent of all occupational fraud is detected by internal audits and only 3 percent is detected through external audits. As you can see, a lot gets past those who should know what to look for. Sadly, most CPAs do not take classes related to fraud during their formal education period. This is probably due to the fact that not many schools offer a fraud examination course or because it's not a topic that is tested on much in the CPA exam.
Fighting fraud calls for somebody who has the education, training, and experience. A CFE does, many CPAs and Internal Auditors do not.
I need to hire somebody to investigate a possible financial crime. Whom should I hire?
That depends on how you intend to investigate it. In Washington State, if all you're doing is having somebody review the books, then a CPA, CFE, or forensic accountant can do that for you. If you need somebody to do more than review the data (which includes interviewing anyone or looking for evidence outside the organization), then you need to hire somebody licensed as a Private Investigator or a CPA. A CFE, or forensic accountant without a PI license is committing an illegal act by investigating any crime, be it financial or otherwise, if not licensed as a private investigator. While there are exemptions to private investigator licensing, CFEs are not exempt (see RCW 18.165.020 for a list of exemptions). Forensic accountants are exempt only if they do not go beyond the analysis of data task.
What type of investigations does Peet & Associates, LLC specialize in?
Our investigative and forensic accounting focus is in four areas:
What is Occupational Fraud?
According to the ACFE, "Occupational fraud - fraud committed against the organization by its own officers, directors, or employees - constitutes an attack against the organization from within, by the very people who were entrusted to protect its assets and resources.
We have seen this numerous times, be it in business partnerships, non-profit organizations, or even sole proprietor businesses. Those who are trusted most are sometimes the ones violating that trust most. Sometimes to the tune of millions of dollars (even in small businesses).
As we say in the fraud investigation industry, "Trust is not a control."
Do you help out Non-Profit Organizations?
In a nutshell, yes. Non-profits are one of the hardest hit industries when it comes to fraud. We not only help investigate fraud, but are more than happy to help you set up a fraud prevention program.
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What’s the difference between fraud detection, a fraud investigation, and a fraud examination?
Fraud detection is simply the discovery of fraud. Fraud is usually detected by managers or others within an organization (internal or external auditors) either through an internal review or a tip.
A fraud investigation is a process of investigating acts of fraud, which includes obtaining evidence, interviewing witnesses and suspects, preparing reports, and testifying to findings in a court of law.
Fraud examination is a methodology for resolving fraud allegations from inception to disposition. This involves obtaining evidence and taking statements, writing reports, testifying to findings, and assisting in the detection and prevention of fraud (ACFE 2010 Fraud Examiner’s Manual).
Do you perform other criminal and civil investigations?
Yes. We have the experience and knowledge to help businesses, government entities, and attorneys investigate civil or criminal acts. Please call or e-mail us to determine if we can meet your needs.
We also have many contacts in the private investigation field that we would be happy to refer you to for such things as digital forensics, surveillance, and accident/injury investigation.
What geographic areas do you serve?
For forensic accounting and expert witness work, we operate nationwide. For investigations that require interviewing people, we only operate in Washington. Most of our investigative work is done in the Seattle-Tacoma-Olympia area, but we are willing to travel anywhere in the state where we're needed.
How confidential are your services?
Extremely. The role of a private investigator is exactly that, to investigate private matters. This means that, with the exception of testifying in court, all matters related to your case are confidential, held between Peet & Associates, LLC and you. Furthermore, Washington State Law specifies that divulging confidential information obtained in the course of any investigation is grounds for disciplinary action unless one is required to do so by law or court order.
Do you work with individuals?
Rarely. We prefer to work with businesses and attorneys, but we will be glad to listen to your issue and will respond to them.
What are your rates?
Our rates are commiserate with those of other firms that specialize in financial investigations.
Are you licensed and insured?
Yes. Peet & Associates LLC holds a Washington State Private Investigative Agency license (#1671). The company is insured according to Washington State Law.
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