What should an auditor do if they suspect an overpayment but lack the legal expertise to assess it?

When an auditor suspects an overpayment, it is crucial to consult with legal counsel if they lack the expertise to assess the situation adequately. This approach ensures that the investigation into the overpayment is conducted in compliance with pertinent laws and regulations. Legal counsel can provide guidance on the appropriate steps to take, the implications of the overpayment, and how to address any potential legal ramifications. This collaboration serves to protect the auditing organization from liability and ensure that any actions taken are legally sound.

Choosing to investigate the matter oneself without the necessary legal knowledge could lead to misinterpretation of the law or the organization's policies, potentially resulting in further complications or legal issues. Reporting only financial discrepancies overlooks the legal aspects that could be pertinent to the case, and ignoring the suspicion entirely fails to address a potential compliance concern that could have serious repercussions. Therefore, consulting with legal counsel is the most prudent course of action.