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10
Fraud Examination Evidence
II: Interview and Interrogation
Methods
McGraw-Hill/I rwin Copyright 2012 by The McGraw-Hill Companies, I nc. All rights reserved.
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Interviews
Interviews and interrogation as terms often used
interchangeably; but interrogation tends to refer to
confrontational interviews conducted by law enforcement.
Conducting effective interviews and interrogations can be
one of the most important evidence-gathering techniques in
forensic accounting.
Interviews can and do produce confessions.
Even in the absence of a confession, credible information
obtained from interviews coupled with documentary evidence
can cause a judge or jury to convict a suspect based on
circumstantial evidence alone.
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Preparing for an Interview
Become familiar with the physical, document, and
observation evidence already collected.
Profile the suspect-interviewee in light of the fraud triangle:
Position in the firm, job functions, length of time with the firm.
Salary and benefits.
Any promotions that may have been expected but not
received.
Work-related interaction with co-workers.
Age and marital status, interests and hobbies.
Assets, outstanding bills, including recent large purchases
Formulate an interview plan, maintain professional
skepticism, and avoid tunnel vision.
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Conducting Multiple Interviews
The interviews begin with individuals who are not suspects
and then proceed to those who are least culpable, and
finally end with the most culpable (i.e., suspects).
When collusion has occurred, the suspects should be
interviewed in the order of their responsibilitythe suspect
believed to be most responsible is to be interviewed last.
the interviewer usually requests that each person being
interviewed not discuss the matter with anyone.
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Conducting the Individual
Interview
Five kinds of questions are asked: introductory,
informational, assessment, admission seeking, and
concluding.
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Introductory Questions
Introductory questions:
Are for both suspects and non-suspects.
Seek to establish rapport with the interviewee, and
cooperation from the interviewee.
Should avoid using sensitive terms like audit or
investigation.
Should be accompanied with close observation of the
subjects demeanor and behavior, and should include only
non-incriminating questions.
The close observation is called calibration. The subjects behavior
with non-confrontational questions can later be compared to his
behavior with confrontational questions.
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Informational Questions
Are for both suspects and non-suspects.
Are designed to collect information that is relevant to the
investigation.
Represent the most important and most frequently used
type of questions an interviewer can ask.
Should include questions directed to the interviewee
regarding whom she believes committed the fraud and why,
assuming she knows the purpose of the investigation.
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Concluding Questions
For non-suspects and suspects who dont show deception.
Are used to (1) confirm information received by the
interviewer during the interview, (2) obtain information that
has not yet been gathered, and (3) seek the subjects
agreement that he will continue to cooperate.
Should confirm the interviewers understanding of the
important facts collected during the interview.
Should ask the subject if she has anything else helpful to
add.
Should end on a positive note.
Can ask the subject to keep the session quiet so that no
one is hurt by what was discussed in the interview.
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Assessment Questions
Are given only to suspects
Must be accompanied by monitoring of verbal and non-
verbal cues
Can provide indications of guilt (not necessarily guilt)
Evasive answers, qualifiers, attacking the interviewer, eye
movements, body language signals may signal deception or guilt.
Eye movements in response to questions vary according to the type
of memory a subject favors (touch-feeling, visual, auditory)
Sitting position, reaching, scratching, shifting position, shifts in
posture or behavior can indicate deception or guilt



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Admission-Seeking Questions
Are only given to suspects who show signs of deception
When seeking a confession, and with sufficient evidence in
hand, the investigator may directly accuse the subject.
When making the accusation, the interviewer should avoid the
use of emotionally charged words such as fraud or theft.
The investigator should not ask the subject whether she acted
wrongly but tell her that she is aware of the fraud and knows
that he committed it.
The suspect should then be asked a question that, if
answered, is tantamount to an explicit confession.
The questions should structured so that the answer is a
general admission of guilt but not a specific admission to a
particular fraud.
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Admission-Seeking Questions
(Continued)
Consider asking a leading question so that any answer to
the question is an admission of guilt.
If the evidence is strong and the suspect doesnt admit
guilt, then indicate you have strong evidence and are going
to terminate the interview and report that the suspect wont
cooperate.
The investigator should not disclose all her evidence
without a confession.
Make confessing easier by giving the suspect a morally
acceptable reason for committing the fraud.
After a confession, the ask in a considerate manner for the
details of the fraud.
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Using Interview Techniques
Recording the interview not generally recommended.
Taking notes.
Written questions not generally recommended.
The interview setting:
Interview suspects in a neutral location
The subject should not be seated behind a desk or table
The subject should have easy access to an unlocked door
The number of interviewers two should be present for
admission-seeking questions; otherwise one is ok.
Mirroring can help establish rapport.
Maintain professional demeanor; dont get angry.
Apply structure to questions.

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Types of Question Structures
Closed-ended questions
Forced-choice questions
Open-ended questions
Connecting questions
Positive reaction questions
Clarifying questions
Confrontational questions
Secondary questions
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Approaches to Persuasion
Interview subjects are more likely to respond when shown
kindness and sympathy.
The interviewer can use several approaches to persuade
the subject to provide evidence:
Main approaches: the direct, indirect, and combined
approaches.
Other approaches: everything is known, folder, silence,
emotion, rapid questioning, and change of location.
The interviewer must know how to overcome subjects not
wanting to answers questions.
Non-suspects may fear that others may retaliate.
Suspects can try to delay or get angry.

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Signed Confessions and
Release of Information
Once the interviewer has overcome objections, established
a morally acceptable reason, and obtained an oral
confession from the suspect, the next step is to have the
person sign a confession.
The signed confession should be a concise statement
regarding the guilt of the perpetrator. It should include a
statement indicating that the confession was voluntarily
made, an acknowledgment that he knew the act was
wrong, the approximate dates on which the offenses
occurred, and an approximate amount of the losses.
The interviewer should have a draft of the confession ready
before the interview.
Obtain subjects permission to access private records.