Welcome to Unit 8 The Interview

Unit 7 Review We learned about all kinds of corruption, and how it relates to fraud. Specifically, we learned about Bribery, Kickbacks, overstatement of assets, and understatements of liabilities.

Unit 8 Financial Statement Fraud Chapters Discussion Board – 2 topic Quiz Seminar We will learn about the difficulty of identifying and detecting these types of fraud because of their complexity. We will also talk about witness and suspect interviewing. You will also be turning in your Final Essays, as well as beginning your Final Projects.

UNIT 8 SEMINAR 4 The Susan Smith Case

The Interviewing Process An INTERVIEW us the most common technique used to investigate and resolve fraud. Types include: A question-and-answer session designed to elicit information 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

The Interviewing Process The three types of interviewees: (1)Friendly Interviewees – Go beyond normal expectation to help out (2)Neutral Interviewees – Have nothing to gain or lose from the interview – Have no hidden motives or agendas (3)Hostile Interviewees – Are often associated in some way with the suspect or the crime – Should be questioned without prior notice

The Interviewing Process 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 Are objective Endeavor to gather information in a fair and impartial manner

The Interviewing Process 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 Knowledgeable Demonstrate a lack of bias On time Professionally attired Fair in all dealings with respondents

Understanding Reactions Sequence of Reaction* 1.Denial 2.Anger 3.Rationalization or bargaining 4.Depression 5.Acceptance *NOTE - Individuals go through the five stages differently can cycle through the emotions of denial, anger, rationalization, and depression a number of times

Understanding Reactions Denial Stage Functions as a buffer after people receive unexpected or shocking news 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 Reactions Anger Stage 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 Reactions Rationalization or Bargaining Stage 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 Reactions Depression Stage 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 Reactions Acceptance Stage Acknowledgement of what happened A desire to resolve the issue and move on Interviews are most useful and witnesses most cooperative

Physiology of Deception Verbal Cues – Changes in Speech Patterns – Repetition of the Question – Comments Regarding Interview – Selective Memory – Making Excuses – Oaths – Character Testimony – Fewer Emotionally Charged Words – Specific Denials – Overuse of Respect

Physiology of Deception Non-Verbal Cues – Full Body Motions – Anatomical Physical Responses – Illustrators – Hands over the Mouth – Manipulators – Fleeing Positions – Crossing the Arms – Reaction to Evidence – Lip Movements

UNIT 8 SEMINAR 17 The Susan Smith Case

18 The Susan Smith Case Relevant Summary of what police had initially: – Immediate outcry – Story of what happened – Missing kids

19 The Susan Smith Case How did the police begin their investigation What did the police do during the middle of the investigation that was crucial After the police confronted Smith, what did she now have? What did the police have to do next? By the end of the investigation, what had the police done, which ultimately helped them succeed in getting Smith to confess?