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City auditor warns forensic audit requires evidence of fraud; council to revisit at Committee of the Whole
Summary
A consultant told the Gladwin City Council that a forensic accounting audit requires a predication of fraud and recommended legal counsel before public or closed-session discussions; council members agreed to bring facts to the next Committee of the Whole meeting.
Interim City Manager Kimberly Hines introduced Cynthia Scott of Stephenson & Company, P.C., who described the differences between forensic accounting audits and other audit types and cautioned the council about legal risk and evidentiary standards.
"To do a forensic accounting audit you need to have predication of fraud," Scott said, adding that expanded audits or…
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