Accounting: Fraud Interview
ProcessLoyola University Maryland
Graduate Accounting Certificate ProgramGB767 Professional Communications
Question StylesOpen Questions Avoid “yes” or “no” answers
Encourage monologue
Examples: “Why?”, “How?”, “Would you know?”
Closed Questions Usually answered with “yes” or “no”
Typically factual questions –specific amounts, dates, & times
Leading Questions• Answer is part of the question
• Usually used to confirm facts already known
Introductory Questions
Purpose: Provide introduction Establish rapport Establish theme of interview
Observe subject’s reaction
Create comfortable climate through small talk
Avoid sensitive questions
Take note of respondent’s reactions - Nonverbal clues very important
Informational Questions
Non-confrontational and Non-threatening
Gather factual information
Ask to develop facts in order of occurrence or some other systematic order
Ask only one question at a time. Frame so only one answer
Give respondent ample time to answer. Do not rush.
How to Close an Interview
1) Reconfirm Facts• Go over key facts to understand correctly• Use leading questions so subject can confirm or deny interpretation
2) Gather Additional Facts• Ask if subject knows other documents or witnesses that would help• Gives impression that you’re interested in all information –no matter what side it favors
3) Concluding the Interview• Ask subject if he/she believes he/she has been treated fairly• Ask permission to contact subject with additional questions
Assessment Questions
• These questions ask the subject to agree with matters that go against the principles of most honest people
• Used only when previous statements by respondent are inconsistent & indicate possible deception
• Used to assess verbal & nonverbal responses to establish credibility
• Should proceed from least to most sensitive
Begin in a non-threatening way. Do not indicate that these questions are for a different purpose than seeking information
Example: “I have a few additional questions.”
Clues to DeceptionVerbal
• Changes in speech patterns
• Repetition of the question
• Comments regarding the
interview
• Answering with a question
• Selective memory
• Making excuses
• Character testimony
• Reluctance to end interview
Nonverbal
• Full-body motions
• Hands over the mouth
• Crossing the arms
• Reaction to evidence
• Illustrators
• Manipulators
• Fleeing positions
• Fake smiles
Examples of Assessment Questions
“Most of them aren’t criminals at all. A lot of times, they’re just trying to save their jobs or just trying to get by because the company is so cheap that they won’t pay people what they are worth. Do you know what I mean?”
Both honest and dishonest will probably answer “yes,” but honest respondents will reply to the effect that they understand the motivation but that it does not justify stealing.
Examples of Assessment Questions
“Why do you think someone around here might be justified in making a secret arrangement with one of the company’s vendors?”
Fraud perpetrators frequently justify their acts, the dishonest individual is more likely than the honest person to attempt a justification, such as, “Everyone does it.” The honest person, on the other hand, is much less likely to offer a justification.
Admission-Seeking Questions• Used only for individuals whose culpability is reasonable certain
• Posed in a precise order to clear the innocent person or encourage the culpable to confess
Important Steps in Admission-Seeking Interview
•Direct Accusation – statement, not a question
Example: “We have reason to believe that you….”
•Observe Reaction –culpable individuals usually react with silence or
weak excuses
•Establish Rationalization –if individual does not confess, establish
morally acceptable rationalization & let respondent fight with
conscience
Things to Remember
Research & set goals before the interview
Take your time constructing questions
Establish an open environment from the beginning
Observe verbal and especially nonverbal reactions
Take notes
Remain calm and confident throughout
* Much of this information is adapted from May and May’s Effective Writing: A Handbook for Accountants 8th Edition