Which of the following statements concerning access to nonpublic records is FALSE?
A.
During the government’s criminal investigation, a fraud examiner not employed by the government has a right to access relevant documents that the government has obtained.
B.
An audit clause can be designed to allow a party to inspect the books of a business partner or vendor.
C.
A fraud examiner can request a business’s bank records even if the business is not legally obligated to comply.
D.
When civil litigation has commenced, a party may often a subpoena or legal order for an individual’s relevant bank records.
Answer: A - This statement is FALSE. Non-government fraud examiners do not have an automatic right to access documents obtained by the government during a criminal investigation. Access is typically restricted to law enforcement and those involved in the legal proceedings.
Why the other options are true:
B. Companies often include audit clauses in contracts, granting them the right to examine financial records of business partners or vendors to ensure compliance with agreements.
C. A fraud examiner can request bank records, but the business is not legally required to provide them unless compelled by a court order or subpoena.
D. During civil litigation, parties can use subpoenas or court orders to obtain relevant financial records, including bank statements, to support their case.
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raochavan
3 weeks, 6 days ago