Chapter 10 - Inquiry Methods and Fraud Reports Flashcards
3 parts of a non-accusatory interview
- introduction
- body
- conclusion
what is the purpose of the introduction phase of the interview?
non-accusatory
get cooperation
establish a baseline
what’s the purpose of the body of the interview?
information who what when where why and how open-ended, non leading questions look for verbal and nonverbal cues "probe"
purpose of the conclusion phase of the interview?
closing questions -anything else? anything I forgot to ask? summarize thank them
examples of an open-ended question
tell me about yesterday…
examples of a closed ended question
were you at the store yesterday?
what’s a leading question?
the answer is contained within the question
is it true you ate at wendys yesterday?
suspect interview format
- intro
- informational (body)
- assessment
- closing - how to conclude
- admission seeking
What are assessment questions
questions you already know the answer to so you can test the person
when does an interviewer use admission-seeking questions?
once they see signs of deception
-they have a discrepancy between documentary evidence and the interview
are internal auditors required to ask about fraud?
yes. SAS 99
who must be interviewed about fraud?
managers
audit committee
internal audit
other employees
required questions to be asked of management
do you have knowledge of fraud? are you aware of allegations of fraud what do you think are fraud risks what programs and controls are in place to mitigate fraud how do you communicate ethical behavior
who would be most likely to reveal a financial statement fraud?
possibly an auditor, but most likely an employee or witness.
when would an auditor move towards a forensic interview?
when there’s predication of a problem and trying to figure out what happened and quantify the impact of it
