chapter 10

Albrecht, Albrecht, Albrecht, Zimbelman© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Fraud Examination, 4EChapter 10: Inquiry Methods

and Fraud Reports

Albrecht, Albrecht, Albrecht, Zimbelman

© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Learning Objectives

Understand the interviewing process.

Plan and conduct an interview.

Understand the nature of admission-seeking interviews.

Describe the different deceptions and lies used by perpetrators.

Describe the different types of honesty testing.

Prepare a fraud report.



The Interviewing Process

An interview is : the most common technique used to

investigate and resolve fraud a question-and-answer session designed

to elicit information a structured (not free-form) conversation

that has a purpose the systematic questioning of individuals

who have knowledge of events, people, and evidence of a case




Interviews also help obtain: information that establishes the essential

elements of the crime leads for developing cases and gathering

other evidence the cooperation of victims and witnesses information on the personal backgrounds

and motives of witnesses




Three types of interviewees: Friendly Interviewees

Go beyond normal expectation to help out

Neutral Interviewees Have nothing to gain or lose from the interview Have no hidden motives or agendas

Hostile Interviewees Are often associated in some way with the suspect or

the crime Should be questioned without prior notice




Characteristics of a Good Interview Sufficient length and depth Focus on pertinent information Should end on a positive note Should be conducted soon after the event Should be objective Endeavor to gather information in a fair

and impartial manner




Characteristics of a Good Interviewer Outgoing personalities Interact well with others Help others feel at ease Do not interrupt respondents unnecessarily Display interest in the subject and in what is

being said Phrase questions in a non-accusatory manner




Characteristics of a Good Interviewer Demonstrate a lack of bias Be on time Attired professionally Deal fairly with respondents



Understanding Reaction to CrisisSequence of Reaction

Stage 1. Denial Acts as a “shock absorber” In the denial stage, people…

appear temporarily stunned or dazed refuse to accept the information given insist that there is some mistake, or fail to comprehend what has been said.



Understanding Reaction to CrisisStage 2. Anger

A dangerous time to resolve frauds

Suspects direct their anger at friends, relatives, coworkers and/or self

Others can insult, harm, slander, or libel suspects and may terminate them without due cause



Understanding Reaction to CrisisStage 3. Bargaining & Rationalization

People attempt to justify the dishonest act and/or to minimize the crime

Leads to failure to prosecute, easy penalties, and weak testimonies

Interviews can be detrimental to attempts to uncover the truth



Understanding Reaction to CrisisStage 4. Depression

Many withdraw or lose interest

People no longer deny or rationalize the dishonest act

Anger is replaced by a sense of loss and disappointment

People often become withdrawn and uncooperative



Understanding Reaction to Crisis Stage 5. Acceptance

Acknowledgement of what happened

A desire to resolve the issue and move on

Interviews are most useful and witnesses most cooperative



Understanding Reaction to CrisisIndividuals go through the five stages differently

Individuals can cycle through the emotions of denial, anger, rationalization, and depression a number of times



Planning an Interview

Follow a plan or outline to meet your objectives

Review relevant documents to gather as much information as possible

Conduct interviews at the interviewee’s office (except for hostile interviewees)

Set up an appointment Plan sufficient (even excess) time for the

interview



Conducting an Interview

Interviewer’s Demeanor Be efficient, courteous, polite, and careful with language

used during interviews Do not talk down to the person

Language of Interviews Use short questions, confined to one topic, which can be

clearly and easily understood. Maintain full control of the interview




Question Typology

Interviewers ask five types of questions: Introductory Informational Assessment Closing Admission-seeking




Elements of ConversationBasic Elements of effective conversation:

Expression

Persuasion

Therapy

Ritual

Information Exchange



Conducting an Interview Inhibitors of Communication

Competing Demands for Time

Threatened Egos

Etiquette

Trauma

Forgetting

Chronological Confusion

Inferential Confusion

Unconscious Behavior




Facilitators of Communication Fulfilling Expectations Recognition Altruistic Appeals Sympathetic Understanding New Experience Catharis Need for Meaning Extrinsic Rewards



Mechanics of the Interview

Methodology Make Physical Contact Establish the Purpose of the Interview Don’t Interview More than One Person at a

Time Conduct the Interview in Private Ask Nonsensitive Questions Get a Commitment for Assistance Establish a Transitional Statement\ Seek Continuous Agreement Do Not Invade Body Space




Question Sequence Questioning should proceed from the

general to the specific; that is, seek general information before details are sought

Note Taking Procedure is especially helpful should

documents from a particular interview be subpoenaed.




Observing Respondent Reactions Must be knowledgeable about respondents’ behavior during

interviews.

Theme Development Be sure to formulate your questions in a way that does not

elicit strong emotional reactions.

Transition Methodology Once the introduction has been completed, transition to the

body of the interview.




Volatile Interviews Typically involve

close friends and relatives of suspects, co-conspirators, and similar individuals.



Physiology of Deception

Detecting Deception There are no quick

and easy techniques for detecting deception; instead, careful practice and learning to look for patterns and comparison lead to expertise in this skill.



Physiology of Deception

Verbal and Nonverbal CuesExtensive academic research suggests that

verbal cues are more reliable predictors of deception than nonverbal cues.

Cues to deception suggests that liars’ attempts to appear honest will lead them to exhibit behaviors in five areas: Increased tension, less positive and pleasant

interactions, less forthcoming responses, less compelling tales, and fewer ordinary imperfections



Honesty Testing

The most common inquiry method is the interview.

Three other methods exist:

Pencil-and-Paper Test

Graphology

Voice stress analysis and polygraphs.



The Fraud Report

Includes: Findings Conclusions Recommendations Corrective actions taken

Should be: Objective Factual Unbiased Free from distortion

chapter 10

Documents