CFE Exam Quiz 41

An interview’s method and effectiveness depend on the amount and quality of the information the interviewer obtains in advance from other sources. For instance, if the interviewer wants a confession from the suspect, he must develop substantial evidence beforehand.

A couple of decisions constitute the planning and preparation phase of an interview which is mostly the first phase. These decisions include:

– The interviewer needs to decide the best order for conducting an interview to maximize its effectiveness.
– The interviewer should carefully manage the timing of interviews.
– The interviewer should consider interview requirements and strategies.
– The interviewer should put into consideration, where the interview will be conducted.
– The interviewer should clearly define the objectives of an interview.

At the beginning of an interview, the investigator should strive to engage with and explain certain things to the interviewee. At the start of an interview, the investigator needs to explain the purpose of the interview, the interviewee’s rights, the ground rules, and any relevant procedures.

In the closure phase of an interview, the investigator brings the interview to a conclusion by confirming what the interviewee has said and explaining what happens next.

During the evaluation phase, the investigator would ask himself a number of questions. These questions include:

– What information did I obtain?
– How does the interview match other available evidence?
– What action do I need to take?
– What further inquiries do I need to make?
– How did I perform and how can I develop my skills?

As with all other phases of a fraud examination, an interview will be most successful if the investigator is thoroughly prepared, which requires that the interviewer understands the mechanics of interviewing. The mechanics of interviewing include:

– Note-taking.
– Maintain eye contact.
– Avoid making notes regarding your overall opinions of a witness.
– Do not convey emotions.
– Writing down questions.
– Documenting results.
– Do not interview more than one person at a time.
– Conduct interviews under conditions of privacy.

When conducting an interview, there are five general types of questions an interviewer can ask. They are introductory questions, informational questions, assessment questions, closing questions, and admission-seeking questions.

The first interviews in a fraud examination are conducted for the purpose of gathering information; therefore, they should be nonconfrontational, nonthreatening, and should encourage open communication.

The first interviews are routine interviews conducted for the purpose of gathering information and in these routine interviews, only three of the five types of questions will normally be asked. They are introductory questions, informational questions, and closing questions.

In routine first interview situations, only three of the five types of questions will normally be asked. They are introductory questions, informational questions, and closing questions. If the interviewer has reasonable cause to believe that the respondent is not being truthful, he can ask assessment questions.

In routine first interview situations, only three of the five types of questions will normally be asked. They are introductory questions, informational questions, and closing questions. If the interviewer has reasonable cause to believe that the respondent is not being truthful, he can ask assessment questions. If the interviewer decides with reasonable cause that the respondent is responsible for misdeeds, he can pose admission-seeking questions.

Chronemic communication refers to the use of time in nonverbal communication and interpersonal relationships to convey meaning, attitudes, and desires. Chronemics is a type of communication where time is used as a message system, including punctuality, amount of time spent with another, and waiting time.

The silent probe is a technique that involves just remaining quiet and waiting for a respondent to continue. The silence may be accompanied by a nod or by a mumbled “uh-huh” as the interviewer focuses on his/her note pad. The silent probe sometimes produces more information than does direct questioning.

Kinetic communication involves the use of body movement to convey meaning. Even though posture, hands, and feet all communicate, interviewers tend to focus attention on the face. Interviewers are more accurate in their judgments of others if they can see facial movements and expressions.

Paralinguistic communication involves the use of volume, pitch, and voice quality to convey meaning. Listening and observation of changes in the nonverbal accompaniment should be done carefully by an interviewer as this is the key to understanding if the respondent is trying to deceive the interviewer.

When respondents perceive the interviewer as being open and friendly, they tend to feel like they have something in common with the interviewer and they feel good about the situation. The following techniques promote this perception: make physical contact, establish a transitional statement, seek continual agreement, and avoid invading personal space.

Rapport can be established between the interviewer and the respondent through verbal techniques, such as using soft words, agreeing with the respondent, and avoiding negative terms.

The interviewer uses body language to create the impression of trust during the interview by gesturing openly with the arms, clasping hands together, and leaning forward in a manner to indicate interest.

The fraud examiner usually obtains a great deal of documentary evidence when conducting fraud investigations. There are two basic types of admissible evidence. They are direct evidence and circumstantial evidence.

Direct evidence shows prima facie (based on first impression), the facts at issue. Direct evidence proves the facts directly.

Circumstantial evidence is evidence that tends to prove or disprove facts in issue indirectly, by inference.

In the case of a kickback allegation, cash deposits of unknown origin deposited to the suspect’s account around the time of the suspect transaction could be considered to be circumstantial evidence. Circumstantial evidence is evidence that tends to prove or disprove facts in issue indirectly, by inference.

In the case of a kickback allegation, a check signed by the vendor and issued to the suspect around the time of the suspect transaction could be considered as direct evidence. Direct evidence proves the facts directly.

It is usually difficult to ascertain the relevance of the evidence early in the case. It is, therefore, important that documents obtained be properly organized early in an examination, and that they are continually reorganized as the case progresses. To maintain effective organization in complex cases, fraud examiners should use the following methods:

– Segregate the documents.
– Make a key document file.
– Establish a database.
– Maintain a chronology.
– Keep a checklist.

A key document file is a separate file that contains copies of certain important pieces of information for quick access. Fraud examiners should make a key document file for easy access to the most relevant documents.

A fraud examiner can establish a database early in the investigation and code all documents if there is a large amount of information to process. Because the coding system should provide meaningful and comparable data, the database should at a minimum, include the following fields of information:

– The date of the document.
– The individual from whom the document was obtained.
– The date the document was obtained.
– A brief description.
– The subject to whom the document pertains.

To aid later easy identification of evidence, all evidence received should be marked. The most common way to mark evidence is with the date and initials of the person obtaining it.

The chain of custody is both a process and a document that memorializes who has had possession of an object and what they have done with it. Essentially, the chain of custody is a recordkeeping procedure similar to physical inventory procedures.

Evidence of fraud usually takes different forms. Evidence of fraud can come in the form of documents, physical evidence, or in the form of statements by witnesses.

Forensic accounting can include many professional services. Typically, forensic accountants perform assignments involving the following services:

– Computer forensics.
– Electronic discovery.
– Bankruptcies, insolvencies, and reorganizations.
– Workplace fraud investigations.
– Calculations of economic losses.
– Business valuations.
– Professional negligence.