1. Welcome to Unit 6
The Interview 1

2. Unit 4 Interviews and Inquiry Methods Chapters 10-11
Discussion Board – 1 topic
Quiz
Seminar
Honesty tests: pencil-and-paper, graphology, voice stress analysis, and polygraphs. We are learning about fraud interviews, financial statement frauds, and how statement analysis is used to detect deception. 2

3. Chapter 9 Short Cases 3-7 All found on pages 264-266 of Chapter 9.
UNIT 4 SEMINAR
Chapter 9 Short Cases 3-7 All found on pages of Chapter 9.

4. 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

5. The Interviewing Process
The 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 5

6. 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 6

7. 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 7

8. Understanding Reactions
Sequence of Reaction*
Denial
Anger
Rationalization or bargaining
Depression
Acceptance
*NOTE - Individuals go through the five stages differently can cycle through the emotions of denial, anger, rationalization, and depression a number of times 8

9. 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. 9

10. 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 10

11. 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 11

12. 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 12

13. 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 13

14. 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 14

15. 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 15

16. Case 3 – p. 311
Daffy Duck, the purchasing manager for ACME Corporation, is under suspicion for committing fraud. His superiors believe he is accepting kickbacks and bribes from various vendors. As the company’s fraud expert, you are investigating this possible fraud and are preparing to interview Daffy. You suspect that Daffy will be defensive and possibly hostile when interviewed.
What investigation procedures should be completed before your admission-seeking interview with Daffy?
If you find evidence that proves Daffy is committing fraud at ACME, what might his initial reaction be when he is confronted? What other emotions and/or reactions might you expect from Daffy? How do you know this? 16

17. Case 9 – p. 313
As a result of the system audit performed by one of the Big 4 accounting firms at Deming Medical corporate offices, it was discovered that Paula, one of the payroll supervisors, had system access rights to transaction codes used by the HR staff. Consequently, it was determined that Paula took advantage of the situation and created a fake employee to whom she was issuing a paycheck every two weeks; only the checks went to Paula’s banking account. Andrew Jacobsen, an investigator working on the case, did extensive research, details of which led him to believe that Paula was embezzling. Andrew is about to go in for a final interview with Paula. Paula had been interviewed before and denied she was involved in the embezzling scheme.
What interviewing tactics should Andrew use to get Paula to admit she was stealing from Deming?
How would he know whether she tells him the truth? 17