Forensic Accounting

By Mary-Jo Kranacher, CPA/CFF, CFEChapter 9

Effective Interviewing and Interrogating

LEARNING OBJECTIVES9-1 Describe the benefits of strong interviewing and interrogation skills.9-2 Discuss the reasons why interviews in fraudulent financial statements and tax returns are

handled differently than interviews in other fraud examinations.9-3 Explain some suggested approaches for conducting interviews.9-4 Identify the five types of interview and interrogation questions.9-5 Discuss why introductory questions are so important to an interview’s success.9-6 Compare open, closed, and leading questions.9-7 Explain the purpose of admission-seeking questions.9-8 Explain why it is advisable to obtain a written confession from the subject of an

investigation.9-9 Identify some verbal clues to deception.9-10 Describe some nonverbal clues to deception.

True/False9-T/F #1. An attorney will often request that the fraud professional or forensic accountant

attend the deposition of key witnesses who have knowledge of, or should have knowledge of, the financial transactions and how they are reflected in the books and records.

Answer: True

9-T/F #2. In a fraud examination, evidence is usually gathered in a manner that moves from the specific to the general.

Answer: False

9-T/F #3. Only after suspected coconspirators have been interviewed is the person suspected of committing the fraud confronted.

Answer: True

9-T/F #4. With fraudulent representations such as materially misstated financial statements and improper tax returns, the investigator starts with the suspected perpetrator.

Answer: True

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9-T/F #5. Taking extensive notes does not distract interviewers from their main responsibility to watch and listen.

Answer: False

9-T/F #6. As the fraud examiner or forensic accountant moves away from witnesses and toward those with higher levels of culpability, the interviews are likely to be friendly and less adversarial.

Answer: False

9-T/F #7. During the introduction stage, the interviewer also maintains a professional tone but importantly solicits the cooperation of the witness, subject, or target

Answer: True

9-T/F #8. During the body of the interview, the interviewer needs to demonstrate patience, and should be sure to interrupt the interviewee.

Answer: False

9-T/F #9. At a minimum, during the close of an interview, the interviewer will review and summarize important aspects of the interview, clarifying when necessary and asking any final questions about the interviewee’s responses.

Answer: True

9-T/F #10. Interrogations, or admission-seeking interviews, are reserved for obtaining confessions from those believed to be culpable for the acts under examination.

Answer: True

9-T/F #11. Rationalizations provide a morally unjustifiable reason for the target’s actions.Answer: False

9-T/F #12. Introductory questions serve four primary purposes: providing an introduction, establishing a rapport, between you and the subject, establishing the theme of the interview, and observing the subject’s reactions.

Answer: True

9-T/F #13. As a general rule, private employers conducting an internal investigation are required to give Miranda warnings.

Answer: False

9-T/F #14. During the admission-seeking interview, you should not make a direct accusation of the subject.

Answer: False

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9-T/F #15. The general law of confessions requires that they be completely voluntary.Answer: True

9-T/F #16. When asked sensitive or emotive questions, the dishonest person typically will change his or her posture completely—as if moving away from you.

Answer: True

9-T/F #17. A liar often will use emotionally provocative terms such as “steal,” “lie,” and “crime.”

Answer: False

9-T/F #18. Dishonest people typically have tolerant attitudes toward illegal or unethical conduct.

Answer: True

9-T/F #19. Norming or calibrating is the process of observing behavior before critical questions are asked, as opposed to doing so during questioning.

Answer: True

9-T/F #20. Assessment questions should proceed logically from the most to the least sensitive.

Answer: False

Multiple Choice9-M/C #1. All of the following are several benefits of effective interviewing and

interrogation skills, EXCEPT:A. Reduced investigation timeB. Increased probability of investigative successC. Increased time of a jury trialD. The elimination of innocent subjects or targets

Answer: C

9-M/C #2. Considerations for conducting good interviews include all EXCEPT:A. Keeping questions reasonably shortB. Discouraging the interviewee from getting off subjectC. Maintaining control of the interviewD. Allowing the interviewee to ramble

Answer: D

9-M/C #3. Suggested approaches for interviewing witnesses include all EXCEPT:

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A. Approach the interview from an adversarial positionB. Start with background informationC. Determine whether the witness is in possession of any pertinent

documentsD. Document the witness’ connection to suspects, subjects, or targets of the

investigation.Answer: A

9-M/C #4. Which of the following questions is NOT appropriate for an interviewer to ask?A. Is there anything that I have forgotten to ask?B. Is there anything else you would like to add for the record?C. Is there anyone else I should speak with about the issues we have covered?D. Do you think embezzling is a crime?

Answer: D

9-M/C #5. Provide a chronological sequence for the introductory phase in interviewing a fraud suspect using the following stages.

1. Establish the interview theme2. Observe reactions3. Establish rapport4. Provide the introduction

A. 4, 3, 1, 2B. 4, 2, 3, 1C. 1, 2, 3, 4D. 2, 3, 4, 1

Answer: A

9-M/C #6. General rules for conducting an introductory interview for potential suspect(s) include all EXCEPT:A. Conduct the interview under conditions of privacyB. Do not interview more than two people at a timeC. Ask non-sensitive questionsD. Get a commitment for assistance

Answer: B

9-M/C #7. General rules for conduction an introductory interview for potential suspect(s) include all EXCEPT:A. Discussing the source of the allegationsB. Seeking continuous agreementC. Ask non-sensitive questions

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D. Conduct the interview under conditions of privacyAnswer: A

9-M/C #8. ________ questions are those worded in a way that makes it difficult to answer “yes” or “no.”A. AccusatoryB. ClosedC. OpenD. Affirmative

Answer: C

9-M/C #9. ________ questions contain the answer as a part of the question.A. OpenB. ClosedC. AffirmativeD. Leading

Answer: D

9-M/C #10. ________ questions are those that limit the possible responses by requiring a precise answer – usually “yes” or “no.”A. OpenB. ClosedC. AffirmativeD. Leading

Answer: B

9-M/C #11. Which step does NOT improve the quality of the interview during the information-gathering phase?A. Ask multiple questions at a timeB. Begin by asking questions that are not likely to cause the respondent to

become defensive or hostileC. Give the person an opportunity to qualify his or her answersD. Ask straightforward and frank questions

Answer: A

9-M/C #12. Which step does NOT improve the quality of the interview during the information-gathering phase?A. Repeat or rephrase questions, if necessary, to get at the facesB. Give the person an opportunity to qualify his or her answersC. Try to help the respondent remember, and suggest answersD. Separate facts from inferences

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Answer: C

9-M/C #13. In order to begin in information phase of the interview, you must first make a transition out of the introductory phase. Which method is NOT commonly used during this phase?A. Begin with background questionsB. Observe verbal and nonverbal behaviorC. Ask leading (closed) questionsD. Approach sensitive questions carefully

Answer: C

9-M/C #14. You will encounter some people who choose to be difficulty during an interview. Which step should NOT be taken in that situation?A. Try to reason with an unreceptive personB. In some situations, change tactics to reduce hostilityC. There should be two interviewers involved in potentially volatile

situationsD. You should not react to anger with hostility

Answer: A

9-M/C #15. Which of the following is NOT a typical closing question in an interview?A. “You knew Ms. Jones had some financial problems, is that right?”B. “If you were trying to resolve this issue, what would you do?”C. “Ms. Collins, this is just a standard question. Do you feel that I have

treated you fairly in this interview?”D. “What is your position in the company?”

Answer: D

9-M/C #16. ________ or ________ is the process of observing behavior before critical questions are asked, as opposed to doing so during questioning.A. Gauging, detectingB. Norming, calibratingC. Surveying, discoveringD. Spying, viewing

Answer: B

9-M/C #17. Admission seeking questions are posed in a precise order designed to:A. Clear an innocent personB. Encourage the culpable person to confessC. Both A and BD. None of the above

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Answer: C

9-M/C #18. As a general rule, private employers conducting an internal investigation are not required to give:A. Miranda warningsB. Evidence to defense counselC. Equal opportunity to all classes of employeesD. Pay for all hours worked

Answer: A

9-M/C #19. Which of the following is NOT a step in the admission-seeking interview (interrogation)?A. Accuse the subject of committing the offenseB. Observe-reactionC. Assure confidentiality to the suspectD. Interrupt denials

Answer: C

9-M/C #20. Which of the following is NOT a step in the admission-seeking interview (interrogation)?A. Establish rationalizationB. Defuse alibisC. Obtain the benchmark admissionD. Offer clemency

Answer: D

9-M/C #21. When pushed into a corner, a subject or witness will often react to the stress created by deception. Some signs of stress that may accompany deception include all EXCEPT: A. Evasive answers to questionsB. An unwillingness to suspect anyone of committing the act under

examinationC. Maintaining eye contact with the interviewerD. Hostility toward the interviewer

Answer: C9-M/C #22. Verbal cues to deception include all EXCEPT:

A. Changes to Speech PatternsB. Immediate answer to interviewer’s questionsC. Making excusesD. Answering with a question

Answer: B

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9-M/C #23. Non-verbal cues for deception include all EXCEPT:A. CalmnessB. Hands over the mouthC. Crossing the armsD. Fleeing positions

Answer: A

Short Answer Essay9-SAE #1. What are some of the reasons that persons often fail to identify lies?Answer: A tendency to believe people. Fraud professionals and forensic accountants tend

to be honest, and they may inflict their value system on others who are more comfortable lying.

Behaviors are incorrectly judged: deceitful behaviors are labeled as truthful, while truthful behaviors are labeled as deceitful.

Failure to recognize reliable cues to deception.

Truthful behavior is relatively easy to imitate if you have knowledge of behavioral cues.

Deceitful behavior is actually the response to stress, not deceit. Thus, simply because the interviewee exhibits symptoms of stress does not mean that they will follow the stress-inducing stimulus with a lie

9-SAE #2. Provide three of Joe Well’s ten commandments for effective interviewing.Answer: 1. Preparation is the key to success.

2. Think as you go.3. Watch nonverbal behavior,4. Set the tone for the interview.5. Set the pace for the interview.6. Keep quiet.7. Be straightforward.8. Patience.9. Circle back.10. Get it in writing.

Critical Thinking ExerciseA murderer is condemned to death. He has to choose between three rooms. The first is full of raging fires, the second is full of assassins with loaded guns, and the third is full of lions that haven’t eaten in three years. Which room is safest for him?

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Answer: The third – lions that haven’t eaten in three years are dead.

Text Review Questions9-TRQ #1. What are the benefits of strong interviewing and interrogation skills?Answer: There are several benefits of effective interviewing and interrogation skills,

including:1. Reduced investigation time2. Increased probability of investigative success3. Improved confidence in investigative conclusions4. Direct evidence of culpability versus indirect evidence from examination of

books, records, and other evidentiary forms5. The elimination of innocent subjects or targets

9-TRQ #2. Why are interviews in fraudulent financial statements and tax returns handled differently than interviews in other fraud examinations?

Answer: With fraudulent representations such as materially misstated financial statements and improper tax returns, the investigator starts with the suspected perpetrator. In other fraud investigations, the perpetrator may be unknown.

9-TRQ #3. What are some suggested approaches for conducting interviews?Answer: The following provides some guidelines for conducting the interview or

interrogation. First, the room should be set up so that the interviewer can see the entire body of the interview subject. The interviewer’s chair should be located about six feet in front of the interviewee. During the interview, the interviewer should be respectful and professional at all times. He or she should avoid technical terms and language that may confuse the interviewee, especially when the person does not have a financial background and is not familiar with fraud examination and forensic accounting terminology. The interviewer should avoid taking detailed notes during the interview, instead just jotting down key words. This may surprise some people, but a key to successful interviewing is listening and watching for body language that suggests discomfort and possibly deceit by the interviewee. Taking extensive notes distracts interviewers from their main responsibility to watch and listen.

9-TRQ #4. What are the five types of interview and interrogation questions?Answer: Regardless of whom we interview, and about what, there are five general types of

questions we can ask: introductory, informational, assessment, closing, and admission-seeking (interrogation).

9-TRQ #5. Why are introductory questions so important to an interview’s success?Answer: Introductory questions serve four primary purposes: providing an introduction,

establishing a rapport between you and the subject, establishing the theme of the interview, and observing the subject’s reactions.

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9-TRQ #6. Why shouldn’t an interviewer use closed or leading questions during the information-gathering phase of the interview?

Answer: Closed questions are those that limit the possible responses by requiring a precise answer—usually “yes” or “no.” (“Did you approve this vendor?”) Closed questions are also used to deal with specifics, such as amounts, dates, and times. (“On what day of the week did it happen?”) Generally, closed questions should be avoided in the informational part of the interview. (They are used extensively in the closing phase.)

9-TRQ #7. What is the primary purpose of admission-seeking questions?Answer: Admission-seeking questions are reserved specifically for individuals whose

culpability is reasonably certain. It is at this point that a suspect becomes a subject. These questions are posed in a precise order designed to (1) clear an innocent person or (2) encourage the culpable person to confess.

9-TRQ #8. Why is it advisable to obtain a written confession from the subject of an investigation?

Answer: There is no legal requirement that a statement must be in the handwriting or wording of the subject. In fact, it is generally not a good idea to let a confessor draft the statement. Instead, you should prepare the statement for the confessor to sign. The confessor should read and sign the statement without undue delay. Instead of asking the confessor to sign the statement, you should say, “Please sign here.” Although there is no legal requirement, it is a good idea to have two people witness the signing of a statement.

9-TRQ #9. What are some of the verbal clues to deception?Answer: Changes in speech patterns.

Repetition of the question.Comments regarding interview.Selective memory.Making excuses.Oaths.Character testimony.Answering with a question.Overuse of respect.Increasingly weaker denials.Failure to deny.Avoidance of emotive words.Refusal to implicate other suspects.Tolerant attitudes.Reluctance to terminate interview.Feigned unconcern.

9-TRQ #10. What are some nonverbal clues to deception?Answer: Full-body motions.

Anatomical physical responses.

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Illustrators.Hands over the mouth.Manipulators.Fleeing positions.Crossing the arms.Reaction to evidence.Fake smiles.

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