1. Fraud Examination, 3E Chapter 10: Inquiry Methods and Fraud Reports
COPYRIGHT © 2009 South-Western, a part of Cengage Learning

2. 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.

3. The Interviewing Process
The most common technique used to investigate and resolve fraud 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

4. Planning an Interview General Preparation
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

5. 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

6. 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

7. Admission-seeking Interviews
These interviews make statements and accuse directly The goal is to elicit confessions from perpetrators

8. Admission-seeking Interviews
Should happen only when a reasonable probability exists that the respondent has committed the act Culpability can be based on verbal and nonverbal responses to interview questions, documents, and/or physical evidence

9. Honesty Testing The most common inquiry method is the interview.
Three other methods exist:
Pencil-and-paper tests
Graphology
Voice stress analysis and polygraphs.

10. The Fraud Report Includes: Should be: Findings Conclusions
Recommendations
Corrective actions taken
Should be:
Objective
Factual
Unbiased
Free from distortion