How to Conduct an Interview with a fraudster

Answer the following question, in detail.

Question: Based on the fraud examination and the fraud triangle, discuss how you, a fraud examiner, would approach and conduct an interview of a fraud suspect(s) in a case you have been assigned.

Solution

The interview to be conducted during the fraud examination of a fraud suspect will need to not only provide information for fraud, but also for admission of guilt; if possible. The objectives of a fraud investigation are to determine: Who, How, Why, What, Where, When and Why.

Substantial planning and preparation are imperative for a successful interview. Preparation means knowing as much as possible about the case, the crime, the suspects, the victims, the witnesses, and the possible perpetrators. The interview with the suspect should include questions that provide information on the perceived opportunity, perceived pressure, and rationalization of the possible perpetrator of the crime (Morales, Gendron, & Guénin-Paracini, 2014). The interview should be designed to interrogate the behavior of the suspect. Any extremes in the behavior of the suspect can indicate deception. The stress of not telling the truth causes the attitudes, and behavior of the perpetrators to change drastically. Thus, any questions which probe the changing behavior should be included.

Questions regarding the general motivation of the individual should be included regarding financial motivations, ideological motivations, coercion, or ego.  All questions should be communicated formally and respectfully. All questions should be kept small, to the point, and avoid leading to a specific answer. The interviewer needs to discourage any off-subject discussions and wild speculations. A variety of questions, including the open-ended questions, close-ended questions, positive reaction questions, clarifying questions, connecting questions, and secondary questions (Dellaportas, 2013).

The interview should include questions exploring the ideological beliefs, normal routine practices, and financial condition of the suspect. Observe what type of rationalization is used by the suspect for the question of the possible innocent motivation of the fraud in their view. Explore the corporate culture of the firm through interviewing related probing questions. Other than the mentioned fraud triangle basics, the capability of the fraudster and the incentive of the fraud to the fraudster should also question to the suspect (Schuchter & Levi, 2016). It should be asked from the suspect that what might be his/her opinion on the incentive that the fraudster had. The capability of the suspect should be evaluated regarding checking if he/she had the capability and capacity to conduct this crime (Kassem & Higson, 2012).

References

Dellaportas, S. (2013). Conversations with inmate accountants: Motivation, opportunity and the fraud triangle. Accounting Forum, 37(1), 29-39.

Kassem, R., & Higson, A. (2012). The new fraud triangle model. Journal of Emerging Trends in Economics and Management Sciences, 3(3), 191-195.

Morales, J., Gendron, Y., & Guénin-Paracini, H. (2014). The construction of the risky individual and vigilant organization: A genealogy of the fraud triangle. Accounting, Organizations and Society, 39(3), 170-194.

Schuchter, A., & Levi, M. (2016). The Fraud Triangle revisited. Security Journal, 29(2), 107-121.