Discussions

Based on authoritative sources (including peer-reviewed articles from the library, Fraud Examiners Manual, Big 4 CPA firms, ACFE (e.g., Report to the Nations), AICPA, IRS, FASB, IASB, IFRS, PCAOB, GASB and so on), discuss how you would interview a suspect that you believe is misappropriating inventory  or equipment at your workplace. Give specific examples of what you would say to the suspect during the interview.

Comment# 1

Interviewing suspects is an important part of the fraud investigation. This is because a lot of the times there is not enough evidence to link a suspect to the crime. This is where a confession becomes very important. If I were interviewing a fraud suspect, there are certain steps and questions I would take to ensure I receive a confession. For example, the first steps to take during the interview process is to establish rapport (Shawyer & Walsh, 2007). This is done to make the suspect feel comfortable with the interviewer. It is typically done before the interview questions are asked to establish some “common ground” (Association of Certified Fraud Examiners, 2018).

After the establishment of rapport, the interview questions will start. First, open ended questions such as “tell me what happened” would be asked. This will allow the suspect to recount the event in their own words. This will often lead to more information about the crime then would have been received by closed questions. In fact, “questions should be structured to encourage the interviewee to volunteer information” (Leinicke, Ostrosky, Rexroad, Baker & Beckman, 2005). Closed ended questions can then be asked to confirm details about the event. For example, “Were you working on Tuesday, June 4th?” Both open and closed questions are important for establishing facts of the event.

Another important part of the interview is to take notes. It is important to keep notes pertaining to the interview. This way events can be recalled and there is a documentation of the information received during the interview. Also, if a confession is given during the interview this should then be condensed to a shorter version in a written statement (Association of Certified Fraud Examiners, 2018). This statement should be signed by the interviewee. A written statement can be more compelling than a verbal one, although, a verbal confession is usually accepted (Association of Certified Fraud Examiners, 2018).

Comment # 2

Top of Form

Interviews constitute a vital part when it comes to conducting a fraud investigation as it often leads to the resolution of a case. Interviewing is known as a systematic questioning which seeks to obtain more details around a forensic accounting issue and even to solicit a confession. When having suspicions of misappropriation of inventory, it is important to interview those from least to most culpable in order to gather as much evidence as possible before interviewing the prime target (Kolman, 2017).

It is critical to learn as much as possible from the witnesses, the crime, and also the victim to have concrete facts surrounding the case. Also, the background of the interviewee need to be taken into consideration as they can take the case to a new direction. When conducting the interview, I would provide background information to the interviewee and I would organize the questions chronologically to follow a sequence and lead the interview to the main situation which is to uncover if that specific employee has misappropriated assets (Meyerowitz, 2012). These discussions will be documented to create a record for the case.

During this process, it is critical to ask open ended questions in order to allow the interviewee to explain their point of view and to clarify further how things occurred. Closed-ended questions are also utilized as they are easier to compare with other interviewees. Observing verbal and nonverbal behaviors is crucial when conducting the interview as their conduct could be indicating dishonesty (Hall, 2015).

Bottom of Form