Business Practices, Records, and Client Relations
Business Practices, Records, and Client Relations
This domain tests the business side of a licensed firm: written engagements, fee transparency, records, data security, and professional communication. The exam expects the firm to act as a business entity, not a loose group of investigators.
Core rules
- Use a written engagement letter or contract: scope, deliverables, fees, expenses, confidentiality, termination, and who may receive the report.
- Explain fees and avoid guarantees of a specific result.
- Keep accurate case files, time records, invoices, and correspondence; retain them under board rules and the contract.
- Protect client data: secure storage, limited access, and safe destruction when retention ends.
- Communicate promptly about setbacks, budget changes, and conflicts; document client instructions.
Worked example
A client wants a flat fee and "no paperwork." The firm should decline the no-paperwork request and send an engagement letter listing the flat fee, the scope, the estimated timeline, and the limitation that the fee does not guarantee a result. The firm opens a case file, records the retainer and expenses, and confirms in writing who will receive the report. If the scope expands, the firm documents the change before doing the work.
Traps
Do not treat a retainer as earned before work is performed unless the contract and rules allow it. Do not promise outcomes. Do not commingle client funds with operating funds; follow the board's rules and contract. Do not release a report to a third party without authority. Do not discard a file while a dispute or legal hold is pending.