Chapter 10 - Describe the steps you would take to investigate

Chapter 10

Short Case 7

1. Describe the steps you would take to investigate the suspected embezzlement.

As an investigator, I would first try to investigate the large fluctuations in the financial statement accounts. Next, I would verify whether the credits and debits done by Jane are correct or not. The person speaking against Jane may also be providing misleading information. Therefore, to prove

whether each claim made by the anonymous person is true, a detailed investigation must be done prior to meeting with Jane. Without thorough research and sufficient evidence, it would be pointless to interview her. In addition, Jane may have climbed the ladder of success rather quickly because of her hard work and excellent skill set, which in turn may have upset the anonymous person to make false claims about her. Jane’s lifestyle may appear more lavish than her salary can reach but that does not necessarily mean that she is involved in fraudulent activity. It would be wise to interview Jane’s co-workers and close friends to obtain information about her and her activities.

2. As a first step in your investigation, would you interview Jane about the problem? Why or why not?

As a first step in my investigation, I would not directly interview her about the problem, however,

I would interview her in a detailed manner starting with an introduction, followed by informative questions, an assessment, and finally, a closing. At first, it would be best to ask Jane general questions. Then, I would begin to ask her more specific and informative type questions to see if she provides accurate and consistent information. If Jane’s answers turn out to be misleading or she is trying to lie throughout the interview process, then assessment and admission seeking type of questions must be asked. It is imperative that the interview with Jane maintains a respectful and professional tone. The questions made to Jane should not demoralize or discourage her. The questions must not be biased. It is important that the investigator maintains control throughout the entire period. Furthermore, careful observation, expertise in detecting patterns and the ability to compare different responses are important attributes in detecting fraud.

3. How would you conduct Jane’s admission-seeking interview in order to be most effective?

If I found sufficient evidence, then I would seek an interview with Jane but without reasonable cause I would reframe from doing so. I would design direct and indirect questions, which could support my evidence of fraud such as, the cause of self-balancing of accounts or changes in behavior and lifestyle.