Albrecht: Fraud Examination, 4e

Chapter10

INQUIRYMETHODSANDFRAUDREPORTS

DiscussionQuestions

1. Aninterviewisaquestionandanswersessiondesignedtoelicitinformation.It
differsfromanordinaryconversationinthattheinterviewisstructured,notfreeform,
andisdesignedforaspecificpurpose.Itisthesystematicquestioningofpersonswho
haveknowledgeofevents,people,andevidenceinvolvedinacaseunder
investigation.

2. Fraud,likedeathorseriousinjury,isacrisis.Peoplewhoareinvolvedinacrisis
generallyexperienceapredictablesequenceofreactionstothecrisis.Interviewers
whounderstandthesereactionsaremuchmoreeffectivethaninterviewerswhodo
not.Thepredictablesequenceofreactionsisasfollows:

Denial
Anger
Rationalizationorbargaining
Depression
Acceptance

3. Thefivegeneraltypesofquestionsaninterviewercanaskareintroductory,
informational,assessment,closing,andadmissionseeking.

4. Whenevertwoormorehumanbeingsareconversing,severaltypesofcommunication
canoccur,includingexpression,persuasion,therapy,ritual,andinformation
exchange.

5. Aninhibitorofcommunicationisanysociopsychologicalbarrierthatimpedesthe
flowofrelevantinformationbymakingtherespondentunableorunwillingtoprovide
informationtotheinterviewer.Thetextidentifiesseveralinhibitorsof
communicationincludingcompetingdemandsfortime,threatenedegos,repression,
disapproval,andlossofstatus.

6. Facilitatorsofcommunicationarethosesociopsychologicalforcesthatmake
conversations,includinginterviews,easiertoaccomplish.Facilitatorsof
communicationincludefulfillingexpectations,recognition,catharsis,andneedfor
meaning.

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7. Informationalquestionsarenonconfrontationalandnonthreatening,andareaskedfor
informationgatheringpurposes.

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8. Asageneralrule,questioningsequenceshouldproceedfromthegeneraltothe
specific;thatis,itisbesttoseekgeneralinformationbeforeseekingdetails.

9. Avolatileinterviewisonethathasthepotentialtobringaboutstrongemotional
reactionsintherespondent.Typicalvolatileinterviewsinvolveclosefriendsand
relativesofasuspect,coconspirators,andsimilarindividuals.

10. Assessmentquestionsseektoestablishthecredibilityoftherespondent.Theyare
usedonlywhentheinterviewerconsiderspreviousstatementsbytherespondenttobe
inconsistentbecauseofpossibledeception.

11. Normingorcalibratingistheprocessofobservingbehaviorbeforecriticalquestions
areaskedasopposedtodoingsoduringquestioning.Normingshouldbearoutine
partofallinterviews.Peoplewithtruthfulattitudeswillanswerquestionsoneway;
thosewithdeceitfulattitudeswillgenerallyanswerthemdifferently.Whenusing
normingorcalibrationtechniques,intervieweesareaskedaboutsomethingtheyare
comfortablewithandthensomethingaboutthefraud.Thisprocessisrepeatedseveral
timesinordertocalibratetheintervieweesverbalandnonverbalcues.

12. Thethreetypesofhonestytestingincludepencilandpapertests,graphology,and
voicestressanalysisandpolygraphs.

True/False

1. False.Manyhonestytestsarenotusedtodeterminewhethersomeonehascommitted
acrimebutratherwhattheirlevelofhonestyis.

2. False.Failuretopassapolygraphtestdoesnotmeancertainguilt.Polygraphsare
deemedtobequiteaccuratewhenpeoplepassthembutlesssowhenpeoplefail.

3. True

4. True

5. True

6. False.Unlessevidencecanbeobtained,nointerviewshouldtakeplace.

7. True

8. True

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9. False.Thefraudreportshouldnotincludedisciplinaryrecommendations.Itshould
statefactsonly.

10. False.Thisstatementistruewithfriendlyandneutralwitnesses,butitisnottrueif
thepersonbeinginterviewedisanadversewitnessorasuspect.

11. False.Fraudreportsshouldlistallfindings.Thegoalistostatewhathappened,
regardlessoftheoutcome.

12. True

MultipleChoice

1. c

2. d

3. b

4. a

5. c

6. d

7. b

8. e

9. d

10. c

11. b

12. a

13. a

14. d

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15. c

16. b

17. a

ShortCases

Case1

Judd Jim
1.Denial Disbelief;letsitgo Dumbfounded;denial
2.Anger Confrontation Whatright
3.Rationalization Jimslippedup Justdoinghisjob
4.Depression Feelssad Thegigisup
5.Acceptance FriendswithJim Admitsguilt

Case2

BecauseyoumayalreadyhaveenoughevidencetosupportyourclaimsagainstDamon,the
firstthingyoushoulddoiscontactthepoliceandpresenttothemtheresultsofyour
investigationandaudits.YoumightprearrangeameetingwithDamonandrecordthe
discussion.Youmaywanttohavepoliceofficerswatchthediscussionlive.Ifyoudecidenot
tohavepoliceinvolvement,Damoncoulddenytheconversationorsaythatyoufabricatedit.
Itisimportanttoplantheinterviewcarefully.

1. IntroductoryQuestions:BecauseyoualreadyknowDamonthroughyourfatherin
lawswork,Damonshouldnotbealertedbyyourrequestforaprivatetalk.Oncethe
discussionhasstarted,youcouldmakesmalltalkinitiallybutshouldkeepitbrief.

2. InformationalQuestions:Youcouldopenlybringupthetopicofhowcheapyour
fatherinlawisandhowyouwishhewouldpaymore.Afteracommentlike,Ibetit
wouldntbehardtofindalittleextramoneylayingaroundtheoffice,youcouldask
Damonifhecanthinkofanyideasofhowtodefraudthecompany.Youcouldask
otherquestionstogathermoreinformation,butifDamonisnotwillingtoopenup
youcouldquestionhimdirectlyaboutthefraud.

3. ClosingQuestions:Toverifythefactshehadtoldyou,itisimportanttoaskclosing
questions.Ifyouwanttoclosetheconversation,youcouldask,Doyouknow
anyoneelseIcouldtalkto?IsthereanythingelseIhaveforgottentoaskyouthat
wouldberelevant?IfIneedtotalktoyouagain,woulditbeokay?

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4. AssessmentQuestions:IfDamonjustdoesnotseemtobeopeninguptoanyofyour
questions,youcouldspecificallybringupsomeofthethingsthatDamonhasdone.
Youcouldsaythatyouhappenedtoseehimcommitfraudandyouwerejust
wonderinghowhehappenedtopullitoffwithoutgettingcaught.Whileaskingabout
thefrauds,youshouldbringupeachonespecificallyandwatchtotrytodetermineif
Damonistellingthetruth.

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5. Admission:SeekingQuestions:IfDamonopensupandfeelscomfortablewithyou,
youcanaskhimifhehaseverdonethethingshedescribedortalkedabout
previously.YouwilllikelyneedtoadmittoDamonthatyouhavebeentrackinghis
fraudsandthathehastakenasubstantialamountofmoney.Youmighttellhimthat
youwantedtotalktohimdirectlyratherthantalkingtoyourfatherinlawbecause
youarehopefulthatyouwillfindanacceptablewaytofixthings.Youshouldask
directquestions,encouragingDamontoconfess.

Beforetheinterview,youshouldhavepreparedawrittenconfessionforDamontosignandit
shouldbeaccessibleincaseheadmitstowhathehasdone.Youmighthavepurposely
misprintedtheamounttakentoread$70,000sothatDamonwillnoticethedifference,
changeitto$50,000,andinitialit.Youshouldbeaware,however,thatmostperpetrators
dontkeeptrackofhowmuchtheystealandtheyalwaysbelieveitislessthantheyreally
took.Puttingtoolargeanumberforthetheftcouldscarehimintonotsigning.

Case3

1. Admissionseekinginterviewsshouldnotnormallybeconducteduntilallother
investigativeprocedureshavebeencompletedoruntilthereisevidencethatcanbe
obtainedonlyfromthesuspect.Thefollowingaresomeofthestepsrecommendedto
becompletebeforeinterviewingthesuspect:

Checkpersonnelrecords
Checkcompanypurchasingrecords
Interviewformeremployers
Interviewunsuccessfulvendors
Searchpublicrecords,invigilation,orsurveillance
Interviewotherpurchasers
Interviewcoworkers
Interviewsuspect

2. Iffoundguilty,Adamwillmorethanlikelyinitiallyexhibitdenial.Later,Adamwill
likelycontinuethroughthesequenceofreactions,includinganger,rationalization,
depression,andacceptance.Fraud,likedeathorseriousinjury,isacrisis,andpeople
whoareinvolvedinacrisisgenerallypassthroughapredictablesequenceof
reactionstothecrisis.

Case4

1. Typically,fraudstershaveaneasytimelyingwhenansweringyesorno
questions.However,itismoredifficultforthemtoactuallycomeupwithsubstance
ordetailsofthelie.Inthiscase,afollowupquestionsuchasWhatkindofcontrols

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areinplace?wouldthenrequiretheaccountanteithertolieorexposethelackof
controls.Bystressingtotheperpetratorthatsomeonedid,infact,havetheabilityto
writefraudulentchecks,hewouldthenstarttoshowincreasedsignsofstressand
exhibitmoreverbalandnonverbalcuesofdeception.Theinterviewcouldthen
continuewiththeinterviewerslowlyintroducingevidencethatshowsthatthe
intervieweecommittedthefraud.Thistechniquewouldconvincetheperpetratorthat
heisalreadycaught,mostlikelyresultinginaconfession.

Case5

1. Thereactionsare:

Denial:MikeinitiallystruggledtoacceptthefactthatBonnydumpedhim.He
frequentlythoughtaboutherasifshewerestillhisgirlfriend.

Anger:MikecutuppicturesofBonnyandthrewdartsatherpicture.

Rationalization:Mikebeganlistingreasonswhyhewasbetteroffwithout
Bonny.

Depression:Mikedidnothaveaninterestinanyothergirlsforaboutsix
months.

Acceptance:Mikerealizeditwastimetomoveonandendedupmeeting
Amyandgettingmarried.

2. Thisexampledemonstrateshowanaveragepersonhandlesacrisis.Investigatorsof
fraudneedtounderstandthatpeoplereactinsimilarwaysaftertheyhavebeen
exposedtoacrisis(fraud).Byunderstandingthetypicalprogressionofreactions,
fraudexaminerswillbebetterpreparedtointerpretinformationtheyobtainduring
interviewsandinvestigations.

Case6

Thisisasubjectiveassignment.Studentsshouldfollowtheprinciplesoutlinedinthechapter
whileconductingmockinterviews.Youmaywishtousethisscenarioandcallupontwo
studentstoconducttheinterviewinfrontoftheclass.Followingtheinterview,theclass
shouldcritiqueinterviewtechniquesused.

Case7

1. Agoodplacetostartwouldbecheckingpersonnelrecordsandcompanyrecordsto
gatherinformationaboutJane.Next,youcouldexaminefinancialstatementaccounts

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toverifythatthereiserraticactivity.Duringhourswhennooneisatwork,youcould
examinedebitandcreditdocumentstoascertaintheirpurpose.InterviewingJanes
coworkersandsubordinatesmightcomenext.Gatheringpublicinformationabout
Janesspendinghabitsandperforminganetworthanalysismightbehelpful.Finally,
youwouldinterviewJane,especiallyifyouhavesufficientevidencetoconfronther
andobtainaconfession.Beforeyouproceedtoofar,youshouldobtaintheCEOsand
legalcounselspermissionsfortheinvestigation.

2. No.ThereareseveralreasonswhyyouwouldnotinterviewJanefirst.First,you
wouldnotwanttoalertJanetothefactthatyouareinvestigatingbecauseyouwould
notwanthertohaveachancetoconcealtheembezzlement.Second,youwouldnot
wanttocauseanyunduehardshiporemotionalstressforherdepartmentorcreate
futurelegalproblemsforthecompany.Finally,inordertoeventuallyseeka
confessionfromJane,youwouldwanttohaveasmuchevidenceaspossibleto
convinceherthatshecannothideherfraudanylonger.

3. Youwouldwanttohaveasmuchevidenceaspossiblewhenyouinterviewedherand
youwouldperformallotherinvestigativeproceduresbeforetheinterview.You
wouldexplaintoJanethatsheshouldfeelfreetoleaveatanytimebutthatyouhave
importantinformationtopresenttoher.Youwouldconducttheinterviewataneutral
locationandmakesurethatitwasasurprisetoJane.Youwouldstatetheallegations
clearlyandindicatethatJanewastheprimarysuspect.Youwoulduseadirect
confrontationalstylewhileusingstatementsofsympathytoseekaconfessionfrom
Jane.

Case8

1. Johnwentthroughthepredictablesequenceoffivereactions:denial,anger,
rationalization,depression,andacceptance.

a. Denial.WhenJohnfirstspokeofthefraud,hementionedhowmuchhe
respectedhisboss.Johnseemedtoscreenoutreality.Hedidnotrespondwell
toquestions,andheseemedemotionallydistantfromthesituation.

b. Anger.Later,Johnbecameangry.Hisangerwasdisplayedbyhiscomments
abouthisboss.Healsodisplacedsomeangertowardhisinnocentfriend.

c. Rationalization.Johntriedtojustifywhyhisbosscommittedthefraud.He
citedhisbosssfamilylife,worktroubles,andrecenttraumaticevents.John
evenmadethecommentthathemighthavedonethesamething.

d. Depression.Johndisplayeddepressioninseveralways.Heblamedhimself
forwhathadhappenedandfeltasenseofembarrassmentforwhathappened
beforehiseyes.

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e. Acceptance.Johnfinallyacceptedthefactthatthefraudhappened.He
acknowledgedthatitoccurredandvolunteeredhisassistancewiththe
investigation.Atthisstage,Johnwantedtohelpresolvethesituationand
moveon.

Case9

1. AndrewmusthavefoundsomestrongevidenceagainstPaulaifheisdeterminedto
haveheradmitherfraud.Usingadmissionseekingquestionswillmostlikelyhelp
himgetPaulatotalk.Admissionseekingquestionsaregenerallyusedwhen
interviewershavegroundstobelieveanintervieweeisguilty.Thefollowingoutlines
acomprehensiveinterviewprocess,whichmayleadtoanintervieweesconfession:

a. Admission:seekingquestionshavetwopurposes.Thefirstistodistinguish
innocentpeoplefromguiltypeople,andthesecondistoobtainavalid
confession.

b. EffectiveAdmission:admissionseekinginterviewsproceedinanorderly
fashion,buttheorderdependsonthecircumstances.

c. AccuseDirectly:theaccusationshouldnotbeaquestion,itshouldbea
statement.Itshouldpsychologicallytraptheperson.However,wordslike
steal,fraud,crime,stole,andembezzledshouldbeavoided.The
followingisanexampleofagoodstatement:Ourinvestigationclearly
establishedthatyoutookcompanyassetswithoutpermission.

d. ObserveReaction:afteranaccusationismade,theinterviewershould
observethereaction.Innocentpeopleusuallydenytheaccusation,whereasthe
guiltyrespondwithsilenceorgrumbling.

e. Interrupt:innocentpeoplewillnotletaninterviewerproceedwithan
accusation.

f. EstablishRationalization:thisisapivotalwaytogettheaccusedtoadmit
theirguilt.Themostcommonrationalizationschemesattempttojustifyunfair
treatment,financialproblems,familyproblems,orrevenge.Hereisan
exampleofastatementthatsuggestsrationalization:Youveworkedhard
heretogetagoodreputation.Idontthinkthecompanyhaspaidyouwhat
yourereallyworth.Andthatsthewayyoufeel,isntit?

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g. VerbalConfession:afteranintervieweerespondspositivelytoa
rationalizationscheme,theinterviewerneedstopushformoredetails.Thisis
agoodtimetoaskforestimatesandamounts.Thisapproachwillrevealeven
moredetailsandwillmaketheintervieweewanttotellmore:Wasitasmany
asfiftytimes?No,thatstoomuch,probablynomorethanten.

h. SignedStatements:afteraverbalconfessionisobtained,theinterviewer
needstoasktheintervieweetosignthestatement.Oneapproachthatverifies
theaccusationisintentionallyfalsifyinginformationonthestatementsothe
accusedistemptedtocorrectit.Thereshouldbenomorethanonestatement
foreachoffense.

2. Theanswerswilloftenleadaninterviewertoconsiderbothverbalandnonverbal
clues,physicalevidence,andanyotherrelevantdocumentation.

Case10

1. Goodplanningisessentialtointerviewing.Theinterviewshouldbeconductedina
privatesettingandideallyshouldbeoneonone.Thephysicalevidencecollected
shouldbebroughttotheinterviewandpresentedtotheintervieweesothatheorshe
feelsthatthebestoptionistoconfess.Potentialwitnessesshouldhavealreadybeen
interviewedsothattheirtestimonycanbepresentedtorebutanypotentialalibis.
Finally,prepareawrittenstatementofconfessiontobesignedbythepersonyou
suspectofcommittingfraud.Ifyouletintervieweeshavetimetothinkaftertheyare
readytoconfess,theywillprobablychangetheirmindsaboutconfessing.

2. Inorderforanyinterviewtoremaineffectiveandproductive,youmustshowrespect
andsensitivity.Acooperativeenvironmentiscreatednotonlyifyouareprofessional
butalsoifyouarethoroughinyourquestioning.Itisnotagoodideatobitebackif
theintervieweebecomeshostile.Avoidusinganaccusatorytoneaswellasharsh
termssuchasstealandfraud.Beattentivetotheanswersgiven,exercisepatience,
andsympathizebyshowingthatyouunderstandwhereheorsheiscomingfrom
(includingpossiblerationalizationforcommittingfraud).Allofthesestepswillaidin
receivingavalidconfession.

CaseStudies

CaseStudy1

1. LeeandJacksonshouldnothavehadtowaitforanhourandahalf,andSherman
shouldnothavemetwithbothLeeandJacksonatthesametime.Shermanshouldnot
havetriedtointimidateLeeandJacksonbywearinganicesuitandbringingBruno

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along,norshouldhehavemadethreatsorclaimsthathecouldnotcarryout.Sherman
shouldhaveneverhavethreatenedtheworkerswithphysicalviolence,andheshould
haveavoidedwordslikeDockies.

2. ShermanshouldhavehadtheconfessionstypedpriortotheinterviewsoLeeand
Jacksonwouldonlyhavetoinitialeachpageandsignonthedottedline.Sherman
couldhavemetwithLeeandJacksononaoneononebasis.Meetingwithtwo
peopleatonceandthengivingthemtimealoneonlygivesthemencouragementand
theopportunitytocollaborateontheirstories.ShermanshouldhaveleftBrunooutof
theentireinterview.TheintimidationofhavingBrunoandhisnightstickpresent
probablyshutdownalllinesofcommunication.

3. ThereweremanythreatsandclaimsmadethatShermancouldnotprove,atleastnot
rightthen.Interviewersshouldnevermakethreatstheycannotcarryoutormake
claimstheycannotprove.Shermanthreatenedtheworkerswithphysicalviolence,
whichviolatescivilandcriminallaw(nottomentiontheGenevaConvention)and,if
carriedoutwouldprobablygetthecasethrownoutofcourt.Shermanmentionedhe
hadsurveillancetapesandconfessions.IfShermancouldnotproducethesurveillance
tapesandconfessionsorifLeeandJacksonhaditongoodauthoritythatShermans
statementwasuntrue,Mr.Shermanscredibilitywouldbedestroyedandanyfuture
contactwithLeeandJacksonwouldbeanexerciseinfutility.

4. ShermannevershouldhavehadLeeandJacksonsummonedtoaninterrogation
room.Tofacilitatecommunication,Shermanshouldhavemetwiththeminaneutral
location.

CaseStudy2

ThefollowingaresomeoftheweaknessesofBriansapproach:

Tobeginwith,Brianarrangedfortheinterviewtotakeplaceinhisoffice.Thiswas
probablyintimidatingandinconvenientforSue,andshewouldnothavehadaccessto
documentsthatwouldhavebeenhelpful.
HesatfarawayfromSue,behindalargedesk.Thisisimpersonalandintimidating.
Hetooknotesduringtheinterview,makingSueselfconsciousregardingwhatshe
said.
Heusedtechnicaljargon.Infact,thelanguageofhisopeningquestionsoundedmore
likethatofafraudreport.
Hetalkeddowntoher,askingifsheknewwhatembezzlementwas.Herconfusion
wasmorelikelycausedbyhisuseoftechnicaljargonorthefactthatshewas
previouslyunawareoffraudinhercompany.
Hepacedaroundtheroomduringpartoftheinterview,furtherintimidatingSue.
Hisquestionselicitedyesandnoanswersanddiscouragedelaboration.

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Hedominatedtheconversation.
Theoveralltoneoftheinterviewwasharsh.Suewasnotasuspect,andsheshould
havebeentreatedwithmorecourtesy.
Brianexpressednoappreciationattheendoftheinterview.Infact,hewassomewhat
coldfromthestartwhenhedidnotstandorgreetherwhenshearrived.
Heshowednosympathyorrespectfortheperpetrator.HadSueknownsomething,
sheprobablywouldhavehesitatedtotellhim.
ItmayhavebeeninappropriateforBriantoidentifyRalphasasuspectatthispointin
theinvestigation.
Hedidnotuseaproperopeningandclosingtotheinterview.

CaseStudy3

1. ItwouldbemostimportanttointerviewthosewhoworkedcloselywithJames.
ManagementneedstobecarefulnottoarousesuspicionsinceJamesmaystillhave
contactwithmanyoftheemployeeswhocontinuetoworkforthecompany.
Managementshouldhaveaccesstoalldocumentsandrecords,whichshouldhelp
significantlyintheinvestigationaswellaspreparingforcrucialinterviews.

2. Managementshouldlookforallinformationthatrelatestokickbackschemesand
vendorfraud.Sincetheinvestigationhasnotrevealedmuchinformationaboutthe
companieswhowerereceivingthechecks,itisimportanttotrytodeterminewhowas
receivingthepaymentsandiftheywerelegitimatecontractors.

3. Eachoftheindividualswillneedtobeapproacheddifferentlydependingonthe
circumstancesandwhethertheindividualishostile,friendly,orneutral.

4. Itisimportantthatmanagementdiscoverasmuchinformationaboutthefraudas
possiblebeforetheyapproachJames.SinceJamesisinsuchafrailcondition,
managementshouldbeespeciallysensitive.However,thosewhointerviewJames
wouldstillneedtofollowtheregularguidelinesforconductinganinterview.

InternetAssignments

1.
a. Partsofspeech:nouns,pronouns,andverbsareexamplesofpartsofspeech.
Ifusageofthesepartsofspeechdeviatesfromthenorm,interviewersshould
askwhy.Forexample,theuseofthefirstpersonsingularpronounIis
indicativeoftruthfulstatementsandnotusingitisadeviationfromthenorm.

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b. Extraneousinformation:informationthatdoesnotanswerthequestion
askedcanindicateadeviationfromthetruthbecausethepersonistryingto
coveruptherealfacts.

c. Lackofconviction:thepersongivingthestatementisavoidingcommitment,
withphrasessuchasIdontremember,orIbelieve.

d. Balanceofthestatement:astatementneedstobemorethanjustaseriesof
details;itshouldbemorelikeanactualaccountoftheevent.Statementsneed
tobebalancedbetweenthreeparts:theintroduction,whichplacestheevent
intocontext;theactualoccurrence;andtheconclusion,whichtellsof
emotionsandreactionsandshouldbeaslongastheoccurrenceitself.

Itisextremelyimportanttoberespectful,professional,andsensitivetothepersonyouare
interviewing.Notonlyistheintervieweemorelikelytoopenuptoyouandbecooperative
butalsoyourchancesofusingtheinformationgatheredasevidenceareincreasedifyou
obtaintheinformationproperly.AsthequotefromtheWebsitementioned,ifinformationis
obtainedbyforce,threat,ormanipulation,mostjudgeswillnotallowtheevidencetobeused
incourt.

2. Thereisnocorrectanswertothisquestion.TherearemanyWebsitesthatdiscuss
interviewing,andstudentresponseswillvarydependingontheWebsitestheyaccess.

3. Studentswillhavedifferentanswersdependingupontheadvertisementtheyfind.
Theanswerstothisquestioncanmakeinterestingclassdiscussions,especiallywhen
youconsiderhowdifferentthecoursescanbe.

4. Studentanswerswillvarybasedontheteststheytake.Aswiththepreviousquestion,
theteststhestudentsfindandtakecanmakeinterestingclassdiscussions.

Debates

1. Theuseofpolygraphshasbothprosandcons.Thebenefitofthepolygraphtestis
that,inthehandsofatrainedexpert,itcanprovidevaluableevidenceandbreakan
otherwiseclosedcasewideopen.Polygraphsareexcellentmeansofobtaining
confessions.Thedrawbackofpolygraphsisthattheyarenotperfectinstruments.An
innocent,frightenedpersonmayfailthetestbecauseheorshedemonstratesthe
characteristicsofaguiltyperson.Also,polygraphsrarelydetectpsychopathicliars.
Expertsagreethatwhilepolygraphsprovidegoodevidenceforinnocence,failureto
passthetestdoesnotnecessarilymeanthepersonisguilty.Istheriskofconvicting
aninnocentpersonworththeriskofnotperformingpolygraphtestsandnot
discoveringfraud?

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2. Legally,itisokaytobedeceptivetoobtainaconfession.Whetheritisethicalis
anotherquestion.Fraudexaminerslineuponbothsidesofthisissue.

AnswerstoStopandThinkQuestions

1. Whatarethedifferencesbetweenthethreetypesofinterviewees:friendly,
neutral,andhostile?

a. Neutralintervieweesareusuallythemosthelpfulbecausetheyarethemost
objective.Friendlyintervieweesmaywanttoprotectorgetevenwiththe
suspect,ortheymayhaveothermotives.Hostileintervieweesmaybe
associatedwiththesuspectorcrime.Suspectintervieweesshouldbe
questionedwithoutnotice.Neutralandfriendlyintervieweescanbe
interviewedbyappointmentandatanytime.

2. Whyisitimportanttodiscloseonlyaportionofthecircumstantialevidenceyou
havecollected?

a. Holdingbacksomeinformationallowstheinterviewertomaintaintheupper
hand.Iftheonebeingquestionedcontinuestodenyafact,theinterviewercan
introducealittlemoreinformationtoshowthatheorshehasmore
information(althoughtheintervieweeneverknowsexactlyhowmuchisbeing
heldback).Itmakestheintervieweeuncomfortableinlyingbecauseheorshe
mightcontradictfactsknownbytheinterviewer.

3. Payingforinformationisonetypeofextrinsicreward.Someprofessionalsmay
requirethatyoupaythemfortheirinterviewtimeorinformation.What
concernsdoesthisraise?Howmightitjeopardizeyourcase?Whenmightitbe
appropriateornotappropriate?

a. Payingpeopleforinformationraisesimmediateconcernsaboutthe
truthfulnessofinformation.Somepeoplewillsayanythingtheyarepaidto
say.Itisimportanttoshowthatthosepaidforinformationwerenotunduly
influencedbythepayments.Onewaytomitigatetheconcernaboutpay
influencingtestimonyistoshowthatitiscommontopaypeopleforagiven
typeofinformation(suchasaprivateinvestigatororanexpertwitness)and
thatthequalificationsofthepersonwarranttrustworthiness.Generally,expert
witnessesarepaidforinformation;factwitnessesarenot.

4. Howdoyouchoosebetweentraditionaltests,graphology,voicestressanalysis,
andpolygraphs?Wheniseachmethodbestused?

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a. Pencil and paper tests are typically used when you want to screen someone for
employment purposes rather than for determining guilt. This makes them less
useful for typical fraud investigations but they can be helpful for screening
prospective employees based on their likelihood to engage in unethical
behavior.

Graphology typically requires an expert to analyze handwriting and, as such,

may delay an investigation. As such, graphology may not be very useful for
getting a confession from someone in the short-term. It is probably better
suited for a court case but is likely to be challenged in court because many
fraud investigators do not trust its reliability.

Voice stress analysis and polygraphs should only be used by highly-trained

investigators. Investigators need to follow the 11 conditions required for using
polygraphs including informing suspects that they dont have to take the test.
However, a trained investigator who follows the 11 conditions can
successfully use a polygraph to help in a high stakes setting where other
means are not working.

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