Interviewing

Question 1

Which of the following is a recommended tactic for interrupting an accused’s denials during an admission-seeking interview?

A. Reasoning
B. Delays
C. Repeated interruptions
D. All of the above

Answer 1

D. All of the above

See pages 3.408-3.409 in the Fraud Examiner’s Manual

Once the accused utters a denial in an admission-seeking interview, it becomes extremely difficult for them to change their response because doing so would be an admission that they lied. Therefore, the interviewer must prevent an outright denial, thereby making it easier for the subject to make an admission of guilt or culpability at a later time. An innocent person is unlikely to allow the interviewer to prevail in stopping the denial.

Fraud examiners can use several techniques to stop or interrupt denials, including delays, repeated interruptions, and reasoning.

Question 2

When preparing a room for an admission-seeking interview, the suspect’s chair should be:

A. About two feet away from the interviewer’s chair
B. Behind a desk or table
C. Within full view of the fraud examiner
D. As comfortable as possible

Answer 2

C. Within full view of the fraud examiner

See pages 3.403 in the Fraud Examiner’s Manual

When preparing a room for an admission-seeking interview, chairs should be placed about four to six feet apart (i.e., 1.2–1.8 meters apart), and the accused should not be permitted to sit behind any physical barriers, such as chairs, tables, or desks. This is to prevent a physical barrier from becoming a psychological barrier that might inhibit responses from the accused.

Question 3

Smith, a Certified Fraud Examiner (CFE), is conducting an admission-seeking interview of Green, a fraud suspect. To encourage Green to make an admission, Smith should express disgust and moral condemnation for Green’s actions.

A. True
B. False

Answer 3

B. False

See pages 3.405 in the Fraud Examiner’s Manual

People rarely confess voluntarily unless they perceive that the benefits of admission outweigh the penalties. A good interviewer, through the application of sophisticated techniques, is able to convince the respondent that the admission is in their best interest.

In doing so, the interviewer must not express disgust, outrage, or moral condemnation about the accused’s actions, as this goes against the basic logic of obtaining admissions, which can be summed up as maximize empathy and minimize the perception of moral wrongdoing.

Question 4

Georgia, a Certified Fraud Examiner (CFE), is conducting an admission-seeking interview of Simon, a warehouse employee. Simon is suspected of stealing inventory from the company’s warehouse to sell on internet marketplaces and covering up the theft by using the company’s computer system to create fraudulent purchase orders. Simon denies any wrongdoing, stating that it is impossible to create false purchase orders using the company’s computer system. Which of the following is the BEST piece of evidence for Georgia to show Simon in response to his denial?

A. A witness statement from a coworker who believes that Simon is living a lifestyle beyond his means
B. A false purchase order that was created using the company’s computer system
C. Surveillance video showing Simon loading boxes into his vehicle behind the warehouse
D. A printout of Simon’s online marketplace account that shows sales of items that are stocked in the warehouse

Answer 4

B. A false purchase order that was created using the company’s computer system

See pages 3.416 in the Fraud Examiner’s Manual

One useful technique that fraud examiners should use during an admission-seeking interview involves showing the suspect specific evidence that will defuse their alibi. When a suspect continues to offer a reason why they could not have committed the act in question despite hearing recounts of witness testimony and reminders of prior deceptions, fraud examiners should show the suspect a piece of evidence discovered during the investigation, if available, that directly contradicts the suspect’s reason.

Of the answer choices, Georgia showing Simon a false purchase order that was created using the company’s computer system directly contradicts Simon’s claim that it is impossible to create false purchase orders using the company’s computer system.

Question 5

After an interviewer has successfully defused a suspect’s alibis, how should the interviewer present evidence to encourage the suspect to confess?

A. Display all the relevant evidence at once to overwhelm the suspect.
B. Display the most important piece of evidence first.
C. Display the evidence one piece at a time, in reverse order of importance.
D. Display pieces of evidence at random.

Answer 5

C. Display the evidence one piece at a time, in reverse order of importance.

See pages 3.416-3.417 in the Fraud Examiner’s Manual

After the interviewer defuses the accused’s alibis, the accused often becomes quiet and withdrawn. At this point in the interview, fraud examiners can encourage the suspect that an admission is in their best interest by continuing to reference the evidence obtained during the investigation.

It is common for most culpable people to overestimate the amount of physical evidence. The interviewer should try to reinforce this notion in the way the evidence is presented to the accused. The physical evidence—usually documents in fraud matters—should generally be displayed one piece at a time, in reverse order of importance. In this way, the accused does not immediately know the full extent of the evidence.

Each time a document or piece of evidence is presented to the accused, the interviewer should note its significance and ask the suspect questions about the accuracy or validity of the evidence, reinforcing the idea that cooperation is their best option. Once the accused commits to an admission of culpability based on a piece of evidence, the interviewer should stop displaying evidence.

Question 6

Which of the following are questions that contain a suggested answer?

A. Closed
B. Complex
C. Compound
D. Leading

Answer 6

D. Leading

See pages 3.337-3.338 in the Fraud Examiner’s Manual

Leading questions are questions that are framed in a way that evokes a specific reply from the respondent; they are questions that contain a suggested answer. Most commonly, leading questions are used to confirm facts already known. This type of question gives the subject much less room to maneuver than an open or closed question because these questions direct the subject to answer in a particular way. Leading questions imply that the interviewer already knows the answer, asking the subject to confirm what is already known. They can be particularly effective in interview situations.

Examples of leading questions include: “So there have been no changes in the operation since last year?”; “Are you still employed by the Westbrook Furnishings Corporation?”; “You got promoted, right?”; and “Don’t you get your income from various sources?”

Question 7

Green, a Certified Fraud Examiner (CFE), is conducting an admission-seeking interview of Brown, a fraud suspect. Brown has confessed to having committed the fraud but is denying that anyone else was involved. However, Green knows this is untrue. What should Green do next?

A. Get Brown’s written admission before continuing the interview.
B. Mention the penalties involved in perjury.
C. Proceed as if the falsehood has been accepted as truth and return to it later.
D. Proceed directly to present evidence against Brown’s co-conspirators.

Answer 7

C. Proceed as if the falsehood has been accepted as truth and return to it later.

See pages 3.418 in the Fraud Examiner’s Manual

Because of the psychology of admissions, most fraudsters lie about one or more aspects of the offense even though they confirm overall guilt. When this happens during the verbal admission, the interviewer should make a mental note of the discrepancy and proceed as if the falsehood has been accepted as truth.

Such discrepancies should be saved until the accused provides all other relevant facts. If the discrepancies are material to the offense, the interviewer should either resolve them at the end of the verbal admission or wait and correct them in the written statement. If not material, such information can be omitted from the written statement.

Question 8

During the introductory portion of an interview, the interviewer must state the interview’s purpose in a general way. This is known as:

A. Establishing rapport
B. Providing the introduction
C. Establishing the interview theme
D. None of the above

Answer 8

C. Establishing the interview theme

See pages 3.328 in the Fraud Examiner’s Manual

The interviewer must state the interview’s purpose in some way prior to the commencement of serious questioning. Otherwise, the respondent might be confused, threatened, or overly cautious. Stating the purpose of the interview is known as establishing the interview theme.

Question 9

There should be two interviewers involved in a potentially volatile interview.

A. True
B. False

Answer 9

A. True

See pages 3.348 in the Fraud Examiner’s Manual

There should be two interviewers involved in potentially volatile situations. Having two people present provides psychological strength for the interviewers. Additionally, the second person can serve as a witness if an interview turns bad.

Question 10

Abel, a Certified Fraud Examiner (CFE), conducted an interview of Baker, the controller of ABC Company. Abel asked the following question: “Since you were here when the controls were developed, can you tell me how they came about?” This kind of question is called a ____________________.

A. Controlled answer technique
B. Double-negative question
C. Complex question
D. None of the above

Answer 10

A. Controlled answer technique

See pages 3.339 in the Fraud Examiner’s Manual

Controlled answer techniques may be used to stimulate a desired answer or impression. These techniques direct the interview toward a specific point. For example, it might be possible to get a person to admit knowledge of a matter by phrasing the question: “I understand you were present when the internal controls were developed, so would you please describe how they were constructed?” This phrasing provides a stronger incentive for the respondent to admit knowledge than does “Were you present when the internal controls were developed?” To stimulate the person to agree to talk or provide information, you might use a prompt such as the following: “Because you are not involved in this matter, I am sure you would not mind discussing it with me.” This provides a stronger incentive to cooperate than “Do you have any objections to telling me what you know?” Avoid negative construction such as “I don’t guess you would mind answering a few questions?”

Question 11

When conducting a routine interview, a fraud examiner should introduce themselves by stating their name, company, and title.

A. True
B. False

Answer 11

B. False

See pages 3.328 in the Fraud Examiner’s Manual

A fraud examiner must introduce themselves before the interview commences. Generally, an interviewer should indicate their name and company, but they should avoid stating their title if possible. In some instances, the interviewer cannot avoid giving their title, and in such cases, the interviewer should use a title that will not conjure up emotions or possible fear in the respondent’s mind.

Question 12

Which of the following is an appropriate moral excuse clause to include in a signed statement of admission?

A. “I didn’t know it was illegal.”
B. “I didn’t mean to do it.”
C. “I didn’t do it on purpose.”
D. “I didn’t mean to hurt anyone.”

Answer 12

D. “I didn’t mean to hurt anyone.”

See pages 3.427 in the Fraud Examiner’s Manual

The signed statement should include the fraudster’s moral excuse, but the fraud examiner should ensure that the wording of the excuse clause does not diminish legal responsibility. Instead of using language such as, “I didn’t mean to do it,” which implies lack of intent, the interviewer should focus on an excuse that provides only a moral explanation for the misconduct.

Question 13

Patricia, a Certified Fraud Examiner (CFE), is interviewing a person whose truthfulness is unknown. Which of the following responses to questions posed by Patricia might indicate a deceptive answer?

A. “I would never do something like that.”
B. “I just can’t seem to remember.”
C. “Why would I do that?”
D. All of the above

Answer 13

D. All of the above

See pages 3.355-3.356 in the Fraud Examiner’s Manual

Dishonest people are more likely than honest people to deny an event specifically. An honest person might offer a simple and clear “no” while the dishonest person might qualify the denial: “No, I did not steal $43,500 from the company on June 27.” Other qualified denial phrases include “To the best of my memory” and “I would never do something like that” or similar language.

In addition, rather than deny the allegations outright, the dishonest person is more likely to answer with a question, such as, “Why would I do something like that?” As a variation, the deceptive person will sometimes question the interview procedure by asking, “Why are you tormenting me?”

In some cases, the deceptive person will have a fine memory for insignificant events, but when it comes to the important facts, they will say something like, “I just can’t seem to remember.”

Question 14

Prior to conducting an interview, an investigator should prepare a thorough list of predetermined questions and provide the questions to the subject in advance.

A. True
B. False

Answer 14

B. False

See pages 3.323 in the Fraud Examiner’s Manual

Whenever possible, do not prepare a list of predetermined questions to ask the subject. The interview should flow freely. The interviewer might, however, want to develop a list of key points to cover during the interview.

Also, do not provide the subject with a list of predetermined questions. Allowing the respondent to read a written list of questions can give them an opportunity to fabricate their answer.

Question 15

Playing with a pencil while talking is an example of a displacement behavior for reducing nervousness that a subject might exhibit during an interview.

A. True
B. False

Answer 15

A. True

See pages 3.358 in the Fraud Examiner’s Manual

Manipulators are motions like picking lint from clothing, playing with objects such as pencils, or holding one’s hands while talking. Manipulators are displacement activities that reduce nervousness.

Question 16

Which of the following statements about electronically recording interviews is MOST ACCURATE?

A. Electronic recording devices can distract subjects and inhibit their responses.
B. No jurisdictions prohibit the electronic recording of employee interviews.
C. Fraud examiners are always permitted to record interviews covertly.
D. Fraud examiners should document all the individual interview recordings together.

Answer 16

A. Electronic recording devices can distract subjects and inhibit their responses.

See pages 3.322 in the Fraud Examiner’s Manual

An investigator might choose to record an interview electronically if the practice is permissible. This allows the investigator to conduct the interview without disrupting the flow of the conversation to take notes. Additionally, recording the interview prevents the subject from observing which points the investigator finds most significant. It is important to keep in mind, however, that an electronic recording device can distract the subject and inhibit their responses. Therefore, fraud examiners should avoid drawing unnecessary attention to such devices and should consider recording interviews covertly when possible. As rules regarding the use of recording devices can vary, an investigator should always check a jurisdiction’s laws before proceeding with an electronic recording, covertly or otherwise.

Even when documenting electronic recordings, the interview notes for each interview should be recorded separately. This can be especially helpful if documents from a particular interview are subpoenaed.

Question 17

When confessing to fraud, suspects tend to provide accurate details on the amount of funds involved and number of instances of misconduct to relieve themselves of the guilt of their dishonest actions.

A. True
B. False

Answer 17

B. False

See pages 3.419 in the Fraud Examiner’s Manual

In fraud matters especially, it is common for the accused to underestimate the amount of funds involved, as well as the number of instances of misconduct. This is probably because of the human mind’s natural tendency to suppress unpleasant matters. If the subject provides an estimate of these items, the interviewer should be skeptical of the figure’s accuracy. If the accused’s response is “I don’t know,” start high with the amounts and gradually come down.

Question 18

Pam, a Certified Fraud Examiner (CFE), is conducting an admission-seeking interview of Luca, a fraud suspect. Luca has decided to make an admission. How should Pam go about getting all the relevant information?

A. Obtain the details in reverse chronological order
B. Obtain the details in order of relevance
C. Get the general information and then move to the specifics
D. None of the above

Answer 18

C. Get the general information and then move to the specifics

See pages 3.418 in the Fraud Examiner’s Manual

During the admission-seeking interview, it is best to first confirm the general details of the offense. For example, the interviewer will want the accused to provide estimates of the amounts involved, name other parties involved in the offense, and give the location of physical evidence. After obtaining these basic facts, the interviewer can return to the specifics, in chronological order.

Question 19

Fraud examiners should generally conduct interviews as closely as possible to the event in question.

A. True
B. False

Answer 19

A. True

See pages 3.302 in the Fraud Examiner’s Manual

The interview should be conducted as closely as possible to the event in question. With the passage of time, the memories of potential witnesses and respondents can become faulty, and critical details can be distorted or forgotten.

Question 20

To stimulate conversation during the information phase of the interview, the interviewer should ask:

A. Open questions that call for a monologue response
B. Leading questions that aim for a particular response
C. Specific questions designed to obtain all the information known by the witness
D. Closed questions designed to keep the witness focused on the intended topic

Answer 20

A. Open questions that call for a monologue response

See pages 3.337 in the Fraud Examiner’s Manual

To stimulate conversation during the information phase of the interview, the interviewer should endeavor to primarily ask open questions. Open questions are those worded in a way that makes it difficult for the respondent to answer “yes” or “no.” Also, the answer to an open question is not dependent on the question. The typical open question calls for a monologue response, and it can be answered in several different ways.

Question 21

Grigori, a fraud suspect, has admitted to Dmitri, a Certified Fraud Examiner (CFE), that he has embezzled funds. Dmitri is unsure whether Grigori had an accomplice. Which of the following is the MOST APPROPRIATE question concerning accomplices?

A. “Was anyone else involved?”
B. “Who else knew about this besides you?”
C. “We have evidence someone else is involved. Who is it?”
D. “Did someone else know?”

Answer 21

B. “Who else knew about this besides you?”

See pages 3.422 in the Fraud Examiner’s Manual

Although most fraudsters commit their crimes without the aid of an accomplice, the interviewer should determine whether others were involved. To obtain this information, the interviewer should not ask if anyone else assisted the fraudster; instead, they should phrase the question similar to this example: “Who else knew about this besides you?”

By asking who else “knew,” the interviewer is not only asking for the names of possible conspirators but also asking about others who might have known what was going on and failed to report it. This question should be worded as “Who else knew?” rather than “Did someone else know?”

Question 22

It is recommended that any witnesses who are considered potentially volatile be interviewed without advance notice.

A. True
B. False

Answer 22

A. True

See pages 3.347-3.348 in the Fraud Examiner’s Manual

Surprise should be employed in any interview that is considered potentially volatile. In many instances, the potentially volatile respondent is unaware that they are going to be questioned, causing them to be unprepared. If the interview is not conducted by surprise, the interviewer runs the risk of the respondent not showing up, showing up with a witness, or being present with counsel. A target’s friends, relatives, and romantic interests often make for a difficult interview. They perceive that the fraud examiner is deliberately targeting someone close to them.

Question 23

Which of the following witnesses should be interviewed by surprise?

A. Volatile witnesses
B. Friendly witnesses
C. Neutral witnesses
D. None of the above

Answer 23

A. Volatile witnesses

See pages 3.347-3.348 in the Fraud Examiner’s Manual

Surprise should be employed in any interview that is considered potentially volatile. In many instances, the potentially volatile respondent is unaware that they are going to be questioned, causing them to be unprepared. If the interview is not conducted by surprise, the interviewer runs the risk of the respondent not showing up, showing up with a witness, or being present with counsel. A target’s friends, relatives, and romantic interests often make for a difficult interview. They perceive that the fraud examiner is deliberately targeting someone close to them.

Question 24

Baker, a Certified Fraud Examiner (CFE), has obtained an oral confession from Gamma, a fraud suspect. Gamma confessed to committing fraud and admitted to smuggling drugs in an unrelated case. How should Baker handle these admissions in Gamma’s written confession?

A. Baker should include both crimes in the same statement
B. Baker should take separate statements for each of the unrelated crimes
C. Baker should omit the information concerning the drug smuggling
D. None of the above

Answer 24

B. Baker should take separate statements for each of the unrelated crimes

See pages 3.428 in the Fraud Examiner’s Manual

When taking a signed statement from a suspect, there should not be more than one written statement for each offense. If facts are inadvertently omitted, the fraud examiner can add them later to the original statement as an addendum. For legal purposes, prepare separate statements for unrelated offenses. This rule applies because the target may be tried more than once—once for each offense.

Question 25

In most interviews, more than half of the respondent’s communications with the interviewer are likely to be nonverbal, so the interviewer should systematically observe the respondent’s reactions to questions.

A. True
B. False

Answer 25

A. True

See pages 3.331 in the Fraud Examiner’s Manual

The interviewer must be skilled in interpreting the respondent’s reactions to questions. Social scientists say that more than half of the communication between individuals is unspoken. Therefore, the interviewer must systematically observe the various responses the respondent gives throughout the conversation but do so in a nondescript manner.

To observe the respondent’s reactions, the fraud examiner should move from comfortable questions to sensitive ones. That is, the interview process should begin by posing comfortable questions while establishing rapport. Asking comfortable questions will help the interviewer find some common ground on which to connect with the respondent.

Question 26

Hugo, a Certified Fraud Examiner (CFE), has obtained an oral confession from Donna, a fraud suspect. Hugo reduced the confession into a short, concise written statement for Donna to sign. After Donna signed the statement, she remembered a significant detail that should have been included. How should Hugo handle this omitted information?

A. Add an addendum to the existing statement
B. Destroy the old statement and prepare a new one
C. Omit the significant detail
D. None of the above

Answer 26

A. Add an addendum to the existing statement

See pages 3.428 in the Fraud Examiner’s Manual

When taking a signed statement from a suspect, there should not be more than one written statement for each offense. If facts are inadvertently omitted, the fraud examiner can add them later to the original statement as an addendum. For legal purposes, prepare separate statements for unrelated offenses. This rule applies because the target may be tried more than once—once for each offense.

Question 27

When planning for an interview, which of the following steps should be taken?

A. Select the most appropriate member of the investigation team to conduct the interview
B. Ensure that the interview is held at a venue where the subject will feel comfortable
C. Contemplate what the interview is intended to accomplish and state an objective
D. All of the above

Answer 27

D. All of the above

See pages 3.301 in the Fraud Examiner’s Manual

To effectively prepare for the interview phase of an investigation, the fraud examiner must first develop a plan. The fraud examiner should contemplate what the interview is intended to accomplish and state an objective. They should also review the case file to ensure that the plan is not devoid of important information that might have been overlooked. The most appropriate member of the investigative team should be selected to conduct the interview based on the interview’s specifics.

When possible, interviews should be held in person, in a venue where the subject will feel comfortable and secure; however, it is not recommended that the interview take place in an environment that is particularly familiar to the subject, such as the interviewee’s home or office.

Question 28

In interview situations, a(n) _______________ is an orderly, continuous account of an event or incident that is given by a respondent with minimal or no prompting.

A. Informational response
B. Unprompted script
C. Free narrative
D. None of the above

Answer 28

C. Free narrative

See pages 3.339-3.340 in the Fraud Examiner’s Manual

The free narrative is an orderly, continuous account of an event or incident that is given with minimal or no prompting. It is used to get a quick synopsis of what is known about a matter. But when seeking to obtain a free narrative, be sure to specify the occurrence that you wish to discuss.

Sometimes the respondent must be controlled to prevent unnecessary digression. Otherwise, avoid interrupting the respondent, and do not stop the narrative without good reason. The respondent will sometimes provide valuable clues when talking about things that are only partially related to the matter under inquiry.

Question 29

When conducting interviews as part of a fraud examination, it is usually BEST to seek known information before seeking unknown information.

A. True
B. False

Answer 29

A. True

See pages 3.336 in the Fraud Examiner’s Manual

As a general rule, questioning should proceed from the general to the specific; that is, it is best to seek general information before seeking specific details. A variation to this approach is to begin by asking questions about known information and then working toward unknown areas. An efficient method of doing this is to recount the known information and then frame the next question as a logical continuation of the facts previously related.

Question 30

Which of the following is a category of informational interview questions?

A. Leading
B. Closed
C. Open
D. All of the above

Answer 30

D. All of the above

See pages 3.326 in the Fraud Examiner’s Manual

Once the proper format for the interview is set, the interviewer then turns to informational questions to gather unbiased, factual information. Typically, the interviewer will ask three types of questions during the fact-gathering portion of an interview: open, closed, and leading.

Question 31

In interview situations, ______________ is defined as a “harmonious accord or relation that fosters cooperation, communication, or trust.”

A. Anomie
B. Rapport
C. Conditioning
D. Active listening

Answer 31

B. Rapport

See pages 3.328 in the Fraud Examiner’s Manual

Merriam-Webster.com defines rapport as a “harmonious accord or relation that fosters cooperation, communication, or trust.” In other words, there must be some common ground established before questioning begins. This is usually accomplished by the interviewer spending a few minutes engaging the respondent in casual conversation. For example, the interviewer might pay the respondent a compliment, make a joke, or ask a friendly question. This aspect, however, should not be overdone, as most people are aware that the interviewer is there for a meaningful purpose.

Question 32

In interview situations, ___________ are questions that often suggest an answer opposite to the correct one.

A. Complex questions
B. Inverted questions
C. Double-negative questions
D. Reverse questions

Answer 32

C. Double-negative questions

See pages 3.338 in the Fraud Examiner’s Manual

Double-negative questions are questions that have two forms of negation within a single clause. Double-negative questions, or statements containing double negatives, are confusing and often suggest an answer opposite to the correct one; therefore, they should not be used. An example of a double-negative question would be “Didn’t you suspect that something wasn’t right?”

Question 33

To avoid missteps when conducting an investigation that spans multiple jurisdictions or is international in scope, it is often a good idea for fraud examiners to consult with local legal counsel or company representatives.

A. True
B. False

Answer 33

A. True

See pages 3.302 in the Fraud Examiner’s Manual

Many investigations span multiple jurisdictions or might be international in scope. Interviewing subjects in these investigations requires fraud examiners to consider the legal or administrative issues specific to all the jurisdictions involved, as well as the cultural norms and practices that should be accommodated. For example, some jurisdictions might restrict a fraud examiner’s ability to interview an organization’s employees or compel their cooperation, require that a legal representative be present for an interview, or limit the use of information obtained during an interview.

Consulting with local legal counsel or company representatives and researching cultural considerations during the planning process can help fraud examiners avoid missteps to ensure that interviews in unfamiliar jurisdictions are not compromised. Legal and administrative rights could dictate whether or how an interview can be conducted, and an understanding of cultural norms and practices will encourage interviewee cooperation and create a foundation for a more effective interview.

Question 34

Which type of question is used to establish the respondent’s credibility?

A. Open
B. Closed
C. Assessment
D. Leading

Answer 34

C. Assessment

See pages 3.341, 3.352 in the Fraud Examiner’s Manual

Assessment questions seek to establish the respondent’s credibility. They are used only when the interviewer considers previous statements by the respondent to be inconsistent because of possible deception. When evaluating a subject’s response to an assessment question for credibility, it is critical to observe both verbal and nonverbal reactions.

Question 35

Generally, it is an indication of deception when an interview subject accused of fraud becomes angry while denying wrongdoing.

A. True
B. False

Answer 35

B. False

See pages 3.406 in the Fraud Examiner’s Manual

When accused of wrongdoing, guilty individuals often react with silence. If the accused does deny culpability, those denials are usually weak. In some cases, the accused almost mumbles the denial. It is common for culpable individuals to avoid outright denials. Rather, they give reasons why they could not have committed the act in question.

Conversely, innocent people sometimes react with genuine shock at being accused. It is not at all unusual for an innocent person who is wrongfully accused to react with anger. In contrast to the guilty person, the typical innocent person will strongly deny committing the act or acts in question.

Question 36

During an admission-seeking interview, Cynthia accuses a suspect of committing a crime. The suspect begins to deny the accusation. The best practice would be for Cynthia to interrupt the suspect’s denial at this point because allowing them to continue with the denial would make it more difficult for them to change their response and make an admission of guilt at a later time.

A. True
B. False

Answer 36

A. True

See pages 3.408-3.409 in the Fraud Examiner’s Manual

Once the accused utters a denial in an admission-seeking interview, it becomes extremely difficult for them to change their response because doing so would be an admission that they lied. Therefore, the interviewer must prevent an outright denial, thereby making it easier for the subject to make an admission of guilt or culpability at a later time. An innocent person is unlikely to allow the interviewer to prevail in stopping the denial.

Cynthia should not allow the suspect to continue with their denial of the accusations. She can use several techniques to stop or interrupt the denial, including delays, repeated interruptions, and reasoning.

Question 37

Which of the following is a purpose of closing questions in interview situations?

A. To end the interview positively
B. To reconfirm facts
C. To obtain additional facts
D. All of the above

Answer 37

D. All of the above

See pages 3.327 in the Fraud Examiner’s Manual

Closing questions seek to close the interview positively. In routine interviews, closing questions serve the following purposes: to reconfirm facts, gather additional facts, and conclude the interview in a manner required to maintain goodwill in case further questioning is necessary.

Question 38

Prior to conducting an interview with a subject located in a foreign jurisdiction, fraud examiners should research relevant cultural norms, including appropriate practices involving greetings, personal space, eye contact, and body language.

A. True
B. False

Answer 38

A. True

See pages 3.302 in the Fraud Examiner’s Manual

Many investigations span multiple jurisdictions or might be international in scope. Interviewing subjects in these investigations requires fraud examiners to consider the legal or administrative issues specific to all the jurisdictions involved, as well as the cultural norms and practices that should be accommodated.

A fraud examiner’s failure to observe and respect cultural norms and practices while conducting an interview—including greetings (e.g., shaking hands or bowing), personal space, eye contact, or body language—could negatively impact the interview process and thereby impede the overall investigation. Consulting with local legal counsel or company representatives and researching cultural considerations during the planning process can help fraud examiners avoid missteps to ensure that interviews in unfamiliar jurisdictions are not compromised.

Question 39

In interview situations, _______________ questions are those worded in a way that makes it difficult for the respondent to answer “yes” or “no.”

A. Complex
B. Open
C. Monologue
D. None of the above

Answer 39

B. Open

See pages 3.337 in the Fraud Examiner’s Manual

Open questions are those worded in a way that makes it difficult for the respondent to answer “yes” or “no.” Also, the answer to an open question is not dependent on the question. The typical open question calls for a monologue response, and it can be answered in several different ways.

Question 40

When questioning a witness as part of a fraud examination, the interviewer should usually ask the questions in what order?

A. From closed questions to open questions
B. In reverse order
C. In random order
D. From the general details to the specific details

Answer 40

D. From the general details to the specific details

See pages 3.336 in the Fraud Examiner’s Manual

As a general rule, questioning should proceed from the general to the specific; that is, it is best to seek general information before seeking details. A variation to this approach is to begin by asking questions about known information and then working toward unknown areas. An efficient method of doing this is to recount the known information and then frame the next question as a logical continuation of the facts previously related.

Question 41

As a general rule, the more intelligent the witness, the less reliable that individual’s verbal and nonverbal clues of deception will be.

A. True
B. False

Answer 41

B. False

See pages 3.353 in the Fraud Examiner’s Manual

Conclusions concerning behavior must be tempered by a number of factors. As a general rule, the more intelligent the respondent, the more reliable verbal and nonverbal clues will be.

A higher level of intelligence breeds more consistency in responses from which deviations are more clearly recognizable. People of lower intelligence tend to be more erratic in their behavior, and thus meaningful deviations are more difficult to discern.

Question 42

If the accused becomes emotional after their alibis have been defused, then the interviewer’s best course of action is either to remain silent until the accused makes an admission or leave the room to allow the accused time to regain their composure.

A. True
B. False

Answer 42

B. False

See pages 3.416 in the Fraud Examiner’s Manual

After the interviewer defuses the accused’s alibis, the accused often becomes quiet and withdrawn. Some people in this situation might cry. If this occurs, the interviewer must be comforting. The interviewer should not remain silent or discourage the accused from showing emotion. Generally, such reactions indicate that the accused is considering whether to make an admission. At this point in the interview, fraud examiners can encourage the suspect that an admission is in their best interest by continuing to reference the evidence obtained during the investigation.

Question 43

When evaluating a respondent’s behavior for signs of deception during an interview, it is important that the interviewer remember that:

A. The interviewer cannot legally accuse the witness of deception
B. Most witnesses can hide the obvious signs of deception
C. No single behavior should be isolated and no single conclusion should be drawn from it
D. None of the above

Answer 43

C. No single behavior should be isolated and no single conclusion should be drawn from it

See pages 3.341 in the Fraud Examiner’s Manual

Because it is easy to draw the wrong conclusions when evaluating signs of deception, no single behavior should be isolated and no single conclusion should be drawn from it. Behaviors should be considered together. For example, a subject’s failure to make eye contact during an interview is not necessarily proof of deception.

Question 44

Norah, a Certified Fraud Examiner (CFE), has obtained a verbal statement of admission from Gabriel, a fraud suspect. Norah wants to probe Gabriel for additional details. Which of the following is the MOST APPROPRIATE question Norah should ask Gabriel to determine if there are any remaining proceeds that can be used to reduce losses?

A. “It’s all gone, isn’t it?”
B. “Did you spend everything?”
C. “Is there anything left?”
D. “What do you have left?”

Answer 44

D. “What do you have left?”

See pages 3.424 in the Fraud Examiner’s Manual

In appropriate situations, the interviewer should find out whether there are unspent or available assets that the accused can use to reduce losses. The interviewer should ask the accused “What is left?” rather than asking “Is there anything left?”

Question 45

Joan, a Certified Fraud Examiner (CFE), is conducting an interview of Adam, an accounts receivable clerk for Ajax Inc. At the beginning of the interview, Joan asked Adam a series of noncritical questions to observe his reactions. Joan was:

A. Establishing a baseline
B. Assessing the witness’s knowledge base
C. Determining the witness’s equilibrium
D. Establishing an interview theme

Answer 45

A. Establishing a baseline

See pages 3.341 in the Fraud Examiner’s Manual

Establishing a baseline is the process of observing behavior before critical questions are asked. Establishing a baseline should be a routine part of all interviews. People who seem truthful will answer questions one way; those who seem untruthful will generally answer them differently.

The best way to establish a baseline with a witness is by asking noncritical questions on background information, place of employment, and other similar areas, particularly if the interviewer already knows the correct answers to the questions. If the witness displays general nervousness or other verbal and nonverbal clues during the phase of questioning intended to establish a baseline, subsequent indicators might not be reliable. The key is to observe changes in behavior when pertinent questions are asked. Examples of noncritical questions include “When did you start with the company?” and “How long is your commute?”

Question 46

Some of the most effective information-seeking questions are phrased as subtle commands.

A. True
B. False

Answer 46

A. True

See pages 3.337 in the Fraud Examiner’s Manual

During the information phase of the interview, the interviewer should endeavor to primarily ask open questions to stimulate conversation. Some of the best open questions are subtle commands.

Question 47

Tobias, a Certified Fraud Examiner (CFE), is conducting an admission-seeking interview of Frederik, a fraud suspect. After Tobias defuses Frederik’s alibis, Frederik becomes visibly emotional. At this point in the interview, Tobias should allow Frederik to show emotion while continuing to reference additional implicating evidence and telling him that it is in his best interest to admit to committing the fraud.

A. True
B. False

Answer 47

A. True

See pages 3.416 in the Fraud Examiner’s Manual

After the interviewer defuses the accused’s alibis, the accused often becomes quiet and withdrawn. Some people in this situation might cry. If this occurs, the interviewer must be comforting. The interviewer should not remain silent or discourage the accused from showing emotion. Generally, such reactions indicate that the accused is considering whether to make an admission. At this point in the interview, fraud examiners can encourage the suspect that an admission is in their best interest by continuing to reference evidence obtained during the investigation.

Question 48

When making a direct accusation in an admission-seeking interview, it is usually BEST to use strong words such as steal, fraud, or crime to reinforce the seriousness of the crime to the suspect.

A. True
B. False

Answer 48

B. False

See pages 3.406 in the Fraud Examiner’s Manual

The admission-seeking part of an interview begins with a direct accusation. The accusation should be made in the form of a statement, not a question.

Also, emotive words such as steal, fraud, and crime should be avoided during the accusatory process. The accusation should be phrased as though the accused’s guilt has already been established, trapping the accused with no way out.

Question 49

Padma, a Certified Fraud Examiner (CFE), is preparing for the interview phase of her investigation. When planning for interviews, Padma should do which of the following?

A. Gather all available evidentiary documents and bring them to the interview.
B. Select an uncomfortable venue for each of the witnesses.
C. Review the case file to ensure that important information has not been overlooked.
D. Obtain enough evidence to establish a subject’s culpability before conducting any interviews.

Answer 49

C. Review the case file to ensure that important information has not been overlooked.

See pages 3.301 in the Fraud Examiner’s Manual

To effectively prepare for the interview phase of an investigation, the fraud examiner must first develop a plan. The fraud examiner should contemplate what the interview is intended to accomplish and state an objective. They should also review the case file to ensure that the plan is not devoid of important information that might have been overlooked. The most appropriate member of the investigative team should be selected to conduct the interview based on the interview’s specifics.

Prior to the commencement of the interviews, the fraud examiner should clearly determine what information might be gleaned from each of the potential witnesses, as well as the best strategy to go about obtaining it.

When possible, interviews should be held in person, in a venue where the subject will feel comfortable and secure; however, it is not recommended that the interview take place in an environment that is particularly familiar to the subject, such as the interviewee’s home or office.

When preparing questions, rather than devise an exhaustive list of questions to ask the subject, the fraud examiner should instead formulate a brief outline of main points to discuss during the interview. Additionally, an investigator should consider which evidentiary documents to take into the interview, if any, as well as which documents they might request from the subject.

Question 50

Sullivan is conducting an interview with Marsha, a potential co-conspirator in a fraud scheme. Throughout the interview, Marsha continuously moves around in her chair and touches her hair, indicating that she is nervous and under stress. Based on these signs, Sullivan should conclude that Marsha is lying to him.

A. True
B. False

Answer 50

B. False

See pages 3.353-3.354 in the Fraud Examiner’s Manual

When detecting deception during an interview, the interviewer must remember that the interviewee or target might already be under stress because of the situation. While lying and deception do indeed cause stress, it is not necessarily true that all stress exhibited during an interview is caused by lying. An honest interview subject might feel stress simply by being asked pointed questions about uncomfortable subjects.

Question 51

Jayna, an employee at a retail store, is accused of skimming money from the register. During an admission-seeking interview with Jayna, the investigator states, “This is a huge corporation with more than a hundred stores, so it’s not like a few dollars here and there is going to affect anyone personally. Is that how you saw it?” This technique is known as:

A. Genuine need
B. Depersonalizing the victim
C. Extrinsic rewards
D. Unfair treatment

Answer 51

B. Depersonalizing the victim

See pages 3.409, 3.413 in the Fraud Examiner’s Manual

If the subject does not confess to the misconduct when faced with direct accusations, the interviewer should try to convince the respondent that confessing is the most advantageous option available. To do this, the interviewer must offer a morally acceptable reason that allows the accused to confess to a misdeed without feeling ashamed. In cases involving employee theft, an effective rationalization technique is to depersonalize the victim. The accused is better able to cope with the moral dilemma of their actions if the victim is a faceless corporation or agency. Examples include: “It isn’t like you took something from a friend or neighbor. I can see how you could say, ‘Well, this would be okay to do as long as it was against the company and not my coworkers.’ Isn’t that right?” or “It’s not like what you have done has really hurt a person. Maybe you thought of it this way: ‘At most, I’ve cost each shareholder a few cents.’ Isn’t that the way it was?”

Question 52

Finn, a Certified Fraud Examiner (CFE), is conducting an admission-seeking interview of Valeria, a fraud suspect. Finn’s theme for establishing rationalization for Valeria’s fraud was that Valeria was treated unfairly at work. But Valeria does not seem to accept this theme. What should Finn do?

A. Continue to repeat the theme
B. Terminate the interview
C. Select another theme
D. None of the above

Answer 52

C. Select another theme

See pages 3.409 in the Fraud Examiner’s Manual

If the subject does not confess to the misconduct when faced with direct accusations, the interviewer should try to convince the respondent that confessing is the most advantageous option available. To do this, the interviewer must offer a morally acceptable reason that allows the accused to confess to a misdeed without feeling ashamed.

If the accused does not relate to one theme, the interviewer should move on to another until one seems to fit. Thereafter, the interviewer should fully develop the theme. Note that the theme development explains away the moral, but not the legal, consequences of the misdeed. The interviewer should not make any statements that might lead the accused to believe that cooperation will eliminate legal liability.

Question 53

Freya, a Certified Fraud Examiner (CFE) for Cole Inc., has conducted an examination into allegations of misconduct against Pilar, the company’s controller. Freya plans to meet with Pilar to ask her about the allegations and to obtain a confession of wrongdoing. Freya’s meeting with Pilar is referred to as a(n):

A. Custodial interrogation
B. Confrontation
C. Admission-seeking interview
D. None of the above

Answer 53

C. Admission-seeking interview

See pages 3.327 in the Fraud Examiner’s Manual

Admission-seeking questions are designed to obtain a legal admission of wrongdoing, and admission-seeking interviews are reserved specifically for individuals whose culpability is reasonably certain; all other reasonable investigative steps have been completed and as much information as possible has been developed from other sources; and the interviewer can reasonably control the interview’s place, time, and subject matter.

Question 54

In interview situations, admission-seeking questions should be phrased as “Did you do it?” rather than “Why did you do it?”

A. True
B. False

Answer 54

B. False

See pages 3.405 in the Fraud Examiner’s Manual

Generally, people do not make an admission if they believe that there is doubt in the accuser’s mind regarding their guilt. Thus, the interviewer must convey absolute confidence in the admission-seeking interview—even if not fully convinced. The interviewer must make the accusation in the form of an implied statement of fact. Accusatory questions do not ask “Did you do it?” They ask “Why did you do it?”

Question 55

James, a Certified Fraud Examiner (CFE), is conducting an admission-seeking interview. Which of the following strategies should James follow in his attempt to obtain an admission?

A. Minimize empathy and maximize the perception of wrongdoing.
B. Offer a morally acceptable reason for the suspect’s behavior.
C. Use a sharp tone of voice that suggests the subject is a bad person.
D. Conduct the interview remotely so that the subject feels more comfortable.

Answer 55

B. Offer a morally acceptable reason for the suspect’s behavior.

See pages 3.405 in the Fraud Examiner’s Manual

Admission-seeking interviews should be conducted only when there is sufficient privacy and time is not a factor. Additionally, the interviewer must not express disgust, outrage, or moral condemnation about the accused’s actions, as this goes against the basic logic of obtaining admissions, which can be summed up as maximize empathy and minimize the perception of moral wrongdoing.

The interviewer must offer a morally acceptable reason for the accused’s behavior. The interviewer cannot convey an opinion that the accused is a “bad person.” Guilty people almost never make an admission under such conditions. To obtain an admission, the interviewer must be firm, but they must also project compassion, understanding, and empathy.

Also, it is very difficult to obtain a signed statement of admission remotely or with witnesses present.

Question 56

Which of the following is an objective of an admission-seeking interview?

A. To obtain a valid admission of guilt
B. To obtain a signed written statement from the accused acknowledging the facts of the case
C. To distinguish innocent individuals from potentially guilty ones
D. All of the above

Answer 56

D. All of the above

See pages 3.402 in the Fraud Examiner’s Manual

The admission-seeking interview is designed to obtain a legal admission of wrongdoing. It also serves various other purposes. For example, it seeks to distinguish innocent (non-culpable) individuals from potentially guilty ones. During the admission-seeking phase of an interview, culpable individuals are more likely to make an admission than innocent individuals unless threats or coercion are used. Also, the interviewer will seek to obtain a valid admission of guilt. And finally, admission-seeking interviews are designed to convince the accused to sign a written statement acknowledging the facts of the case.

Question 57

Martin, a Certified Fraud Examiner (CFE), is conducting an admission-seeking interview of Doris, a fraud suspect. Although Martin has already interviewed several witnesses, he should NOT tell Doris under any circumstances that he has interviewed other individuals.

A. True
B. False

Answer 57

B. False

See pages 3.415 in the Fraud Examiner’s Manual

A useful technique for defusing alibis is to discuss the testimony of witnesses. The objective is to give enough information about what other people might say without providing too much. Ideally, the interviewer’s statement will cause the accused to think that people are able to contradict the story that the accused is providing.

The interviewer is again cautioned about furnishing enough information to the accused so that they can identify the witnesses. This might place the witnesses in a difficult position, and the accused might contact the witnesses in an effort to influence testimony. The accused could also take reprisals against potential witnesses.

Question 58

In interviews, introductory questions are designed to meet which of the following objectives?

A. To provide the introduction
B. To establish the interview theme
C. To establish rapport
D. All of the above

Answer 58

D. All of the above

See pages 3.326 in the Fraud Examiner’s Manual

Introductory questions are designed to meet four objectives: provide the introduction, establish rapport, establish the interview theme, and observe the respondent’s reactions.

Question 59

Jane is a Certified Fraud Examiner (CFE) working on an investigation at Mill Corp. During an interview, Colin, an employee at Mill Corp., admits to Jane that he has been embezzling money from the company. Which of the following pieces of information does Jane NOT have to obtain from Colin?

A. A statement from Colin indicating that his conduct was an accident
B. An estimate of the amount of money that Colin embezzled
C. The approximate date Colin started embezzling the money
D. Information about the involvement of other Mill Corp. employees

Answer 59

A. A statement from Colin indicating that his conduct was an accident

See pages 3.418-3.424 in the Fraud Examiner’s Manual

If a fraud examiner gets a verbal admission from the fraudster, it does not matter whether the fraudster claims their conduct was an accident. The interviewer should obtain the following items of information during the verbal admission:

• An admission that the accused knew the conduct in question was wrong
• Facts known only to the subject (e.g., estimates of the number of instances of wrongful conduct and the total amount of money involved)
• The accused’s motive for the offense
• The approximate date and time that the offense started
• The approximate date and time that the offense was terminated
• Information about the involvement of others
• Physical evidence
• Information about what happened to any illicit income derived from the misdeeds
• Information about any residual assets that the accused can use to reduce losses
• Information about the specifics of each offense

Question 60

During the introductory phase of the interview, the interviewer should avoid terms that could result in a strong emotional response, such as:

A. Review
B. Investigation
C. Inquiry
D. All of the above

Answer 60

B. Investigation

See pages 3.331 in the Fraud Examiner’s Manual

Interviewers are encouraged to formulate their questions in a way that will not bring about a strong emotional reaction from the respondent, and emotive words of all types should be avoided during the introductory phase. Such words put people on the defensive, making them more reluctant to answer and cooperate. Words such as investigation and audit should be avoided. It is better to use words with a softer meaning, such as inquiry or review.

Question 61

Which of the following is NOT one of the three basic approaches for obtaining a verbal admission that an interviewer should consider using based on the circumstances of the case?

A. By transaction
B. By event
C. Chronologically
D. In reverse chronology

Answer 61

D. In reverse chronology

See pages 3.418 in the Fraud Examiner’s Manual

In an admission-seeking interview, the interviewer should transition to the verbal statement of admission when the accused provides the first detailed information about the offense. There are three basic approaches to obtaining the verbal admission: chronologically, by transaction, or by event. The approach taken should be governed by the circumstances of the case. Once a verbal admission is obtained, the interviewer must probe gently for additional details—preferably details that only the subject knows.

Question 62

When shifting from assessment questions to admission-seeking questions, the fraud examiner should provide a transitional theme that is designed to make the subject believe that they have been caught.

A. True
B. False

Answer 62

A. True

See pages 3.401 in the Fraud Examiner’s Manual

A transitional theme is necessary when proceeding from assessment questions to admission-seeking questions. In part, the theme should be designed to make the subject believe that they have been caught. For example, the interviewer might leave the room for a few minutes before proceeding to admission-seeking questions, perhaps saying that they have to “check on something.”

Question 63

Once a suspect has offered a verbal admission in an interview, it is important to get copies of as much physical evidence as possible. Bank records are of particular importance. Which of the following is the recommended method for obtaining bank records after a verbal admission?

A. Ask the subject to bring the records to the next interview session.
B. Ask to meet the subject the next day at their bank.
C. Obtain a separate written authorization for the release of the bank records.
D. Obtain an oral authorization for the release of the bank records.

Answer 63

C. Obtain a separate written authorization for the release of the bank records.

See pages 3.422 in the Fraud Examiner’s Manual

Interviewers should obtain physical evidence from the accused—regardless of how limited it might be. In many instances, fraudsters deposit illicit income directly into their bank accounts. The interviewer should typically ask the accused to voluntarily surrender their banking records for review. It is recommended that either (1) a separate written authorization be obtained or (2) specific language be added to the written statement noting the voluntary surrender of banking information. The first method is generally preferable.

Question 64

If, during an admission-seeking interview, the interviewer wants to reduce the accused’s perception of the moral seriousness of the act in question, which of the following would be an appropriate statement for the interviewer to make?

A. “It’s really not a big problem, legally.”
B. “This doesn’t mean you’re Bernie Madoff.”
C. “It’s just a technical violation.”
D. None of the above

Answer 64

B. “This doesn’t mean you’re Bernie Madoff.”

See pages 3.413-3.414 in the Fraud Examiner’s Manual

In many cases, the interviewer can reduce the accused’s perception of the moral seriousness of the matter. But the moral seriousness should not be confused with the legal seriousness. Fraud examiners and interviewers should be careful to avoid making statements that could be construed as relieving legal responsibility. For example, the fraud examiner should not state: “It is not a big problem, legally. It’s just a technical violation.” Instead, the interviewer should minimize the moral side’s importance. One effective way is through comparisons, such as: “Everything is relative. What you have done does not even come close to some of the other things that have happened. You’re not Bernie Madoff, right?”

Question 65

Which of the following conditions indicates that it is the appropriate time to ask admission-seeking questions?

A. The interviewer can control the interview’s time, location or venue, and subject matter
B. All reasonable investigative steps have been completed and as much information as possible has been developed from other sources
C. The interviewer believes there is a reasonable probability that the subject is responsible for the act in question
D. All of the above

Answer 65

D. All of the above

See pages 3.401 in the Fraud Examiner’s Manual

Normally, the interviewer should ask accusatory or admission-seeking questions when all the following are true:

• There is a reasonable probability that the respondent has committed the act in question.
• All other reasonable investigative steps have been completed and as much information as possible has been developed from other sources.
• The interviewer can reasonably control the interview’s location or venue, time, and subject matter.

Question 66

When establishing rapport, it is important that an interviewer observe a subject’s reaction to normal conversation to establish a baseline against which answers to more sensitive questions can be compared.

A. True
B. False

Answer 66

A. True

See pages 3.332 in the Fraud Examiner’s Manual

After the interviewer establishes rapport through normal conversation, they must observe the respondent’s reactions. This will serve as a baseline for observing behavior when questions that are more sensitive are asked. If the respondent’s verbal and nonverbal behaviors are inconsistent from one type of question to another, the interviewer should attempt to determine why.

Question 67

When a potentially deceptive interview respondent constantly asks the interviewer to repeat a question or repeats the question themselves, the respondent is usually just trying to make sure that they have fully understood the question being asked.

A. True
B. False

Answer 67

B. False

See pages 3.355 in the Fraud Examiner’s Manual

Repeating the question is a means for a deceptive respondent to gain more time to think of what to say. The respondent might repeat the question verbatim or might frame the answer with a request to repeat the question (e.g., “What was that again?” or similar language). Conversely, a truthful subject usually does not have to contemplate an answer.

Question 68

An admission-seeking interview is specifically designed to:

A. Obtain a legal admission of wrongdoing
B. Determine whether the subject’s responses are credible
C. Gather background information about the subject
D. All of the above

Answer 68

A. Obtain a legal admission of wrongdoing

See pages 3.402 in the Fraud Examiner’s Manual

The admission-seeking interview is designed to obtain a legal admission of wrongdoing. It also serves various other purposes. For example, it seeks to distinguish innocent (non-culpable) individuals from potentially guilty ones. During the admission-seeking phase of an interview, culpable individuals are more likely to make an admission than innocent individuals unless threats or coercion are used. Also, the interviewer will seek to obtain a valid admission of guilt. And finally, admission-seeking interviews are designed to convince the accused to sign a written statement acknowledging the facts of the case.

Question 69

To better prepare for the possibility that interview records will be subpoenaed, fraud examiners should document their notes for each interview separately, even when documenting electronic recordings.

A. True
B. False

Answer 69

A. True

See pages 3.322 in the Fraud Examiner’s Manual

The interviewer will frequently need to document interviews by taking notes or recording the interview electronically if permissible. Interviews without notes or recordings are limited in value because they leave the results of the interview open to interpretation or dispute.

When taking notes, fraud examiners should follow a few basic rules. First, the interview notes for each interview should be recorded on a separate document, even when documenting electronic recordings. This can be especially helpful if documents from a particular interview are subpoenaed.

Second, take accurate notes during the interview, but they do not necessarily need to be verbatim. Do not try to write down all the information provided during an interview; only write down the pertinent facts. Taking too many notes will make the interview process cumbersome, and it might inhibit the respondent. If, however, a quote is particularly relevant, try to write it down verbatim. Enclose all direct quotes in quotation marks.

Third, do not slow down the interview process for note-taking. Instead, write down keywords or phrases, such as those that identify the people, locations, actions, and times mentioned by the interviewee, and then go back over the details at the end of the interview. In general, it is better to err on the side of taking too few notes rather than too many.

Question 70

Which of the following is NOT a recommended approach to dealing with a hostile or argumentative respondent during an interview?

A. Disarm the respondent by agreeing with their points wherever possible.
B. Attempt to reason with the respondent.
C. Avoid showing any kind of reaction to the respondent’s hostile behavior.
D. Make it difficult for the respondent to say “no” to any points raised.

Answer 70

B. Attempt to reason with the respondent.

See pages 3.345-3.346 in the Fraud Examiner’s Manual

The interviewer will invariably encounter a few difficult people. There are five common-sense steps to take with such people:

• Do not react. There are three natural reactions for an interviewer who is verbally assailed by the respondent: to strike back, to give in, or to terminate the interview. None of these tactics is satisfactory because none of these responses lead to a productive interview.
• Disarm nonreceptive respondents. A common mistake that interviewers make is to try to reason with an unreceptive person. To disarm the person, listen, acknowledge the point, and agree wherever possible.
• In some situations, changing tactics to reduce hostility might be the only viable option.
• Make it easy to say “yes” by agreeing with one of the respondent’s statements and continue from there.
• Make it hard for the respondent to say “no.”

Question 71

Which of the following is a verbal clue of deception when displayed by a respondent being interviewed?

A. Oaths
B. Change in voice pitch
C. Comments regarding the interview
D. All of the above

Answer 71

D. All of the above

See pages 3.354-3.355 in the Fraud Examiner’s Manual

Verbal clues refer to how an individual conveys information vocally, including tone, pitch, volume, and rate of speech; verbal clues are not only about word choice. Verbal clues are those relating to wordings, expressions, and responses to specific questions. Some examples of verbal clues include:

• Changes in speech patterns (e.g., changes in voice pitch)
• Comments regarding the interview
• Oaths

Question 72

When documenting interview situations by taking notes, it is usually advisable to take too many notes rather than too few.

A. True
B. False

Answer 72

B. False

See pages 3.322 in the Fraud Examiner’s Manual

Fraud examiners should take accurate notes during the interview, but they do not necessarily need to be verbatim. Do not try to write down all the information provided during an interview; only write down the pertinent facts. Taking too many notes will make the interview process cumbersome, and it might inhibit the respondent. If, however, a quote is particularly relevant, try to write it down verbatim. Enclose all direct quotes in quotation marks.

Furthermore, do not slow down the interview process for note-taking. Instead, write down keywords or phrases, such as those that identify the people, locations, actions, and times mentioned by the interviewee, and then go back over the details at the end of the interview. In general, it is better to err on the side of taking too few notes rather than too many.

Question 73

Beth, a Certified Fraud Examiner (CFE), is conducting a routine interview of someone who does not know her. In such situations, it is usually best for Beth to omit her title when introducing herself.

A. True
B. False

Answer 73

A. True

See pages 3.328 in the Fraud Examiner’s Manual

Beth must introduce herself before the interview commences. Generally, an interviewer should indicate their name and company, but they should avoid stating their title if possible. In some instances, the interviewer cannot avoid giving their title, and in such cases, the interviewer should use a title that will not conjure up emotions or possible fear in the respondent’s mind.

Question 74

Which of the following is a legal or administrative consideration that fraud examiners must make when preparing to interview a subject located in a different jurisdiction?

A. Whether the subject can be compelled to cooperate
B. Whether the use of any information obtained will be limited
C. Whether a legal representative must be present
D. All of the above

Answer 74

D. All of the above

See pages 3.302 in the Fraud Examiner’s Manual

Many investigations span multiple jurisdictions or might be international in scope. Interviewing subjects in these investigations requires fraud examiners to consider the legal or administrative issues specific to all the jurisdictions involved, as well as the cultural norms and practices that should be accommodated. For example, some jurisdictions might restrict a fraud examiner’s ability to interview an organization’s employees or compel their cooperation, require that a legal representative be present for an interview, or limit the use of information obtained during an interview.

Question 75

In taking a verbal admission, which of the following items of information should an interviewer obtain?

A. That the accused knew the conduct was wrong
B. The accused’s motive for the offense
C. Estimates of the number of instances, dates, and amounts involved
D. All of the above

Answer 75

D. All of the above

See pages 3.418-3.424 in the Fraud Examiner’s Manual

The interviewer should obtain the following items of information during the verbal admission:

• An admission that the accused knew the conduct in question was wrong
• Facts known only to the subject (e.g., estimates of the number of instances of wrongful conduct and the total amount of money involved)
• The accused’s motive for the offense
• The approximate date and time that the offense started
• The approximate date and time that the offense was terminated
• Information about the involvement of others
• Physical evidence
• Information about what happened to any illicit income derived from the misdeeds
• Information about any residual assets that the accused can use to reduce losses
• Information about the specifics of each offense

Question 76

Although rules vary depending on the jurisdiction, the presence of a third party at an admission-seeking interview could have liability consequences.

A. True
B. False

Answer 76

A. True

See pages 3.404 in the Fraud Examiner’s Manual

Where allowed by law, no observers, other than the subject and up to two fraud examiners, should be permitted in the admission-seeking interview because, among other reasons, the presence of third parties could have liability consequences. Some jurisdictions, such as the United Kingdom, prevent fraud examiners from refusing to allow interviewees to be accompanied by another individual. Additionally, if the accused is in a union, a union representative (or a union attorney) might have the right to attend. However, this might present legal problems in allowing a third party to hear any allegations made. Also, because it is very difficult to obtain a signed statement of admission remotely or with witnesses present, the fraud examiner should consider whether the case can be proven without the admission-seeking interview.

Question 77

Liliana, a Certified Fraud Examiner (CFE), is attempting to get a fraud suspect to admit guilt. Liliana should:

A. Give the suspect an excuse for their behavior
B. Directly accuse the suspect
C. Show the suspect incriminating evidence
D. All of the above

Answer 77

D. All of the above

See pages 3.405-3.406, 3.415, 3.417 in the Fraud Examiner’s Manual

People rarely confess voluntarily unless they perceive that the benefits of admission outweigh the penalties. A good interviewer, through the application of sophisticated techniques, is able to convince the respondent that the admission is in their best interest.

The admission-seeking part of an interview begins with a direct accusation. The accusation should be made in the form of a statement, not a question.

Additionally, to obtain an admission of guilt, the interviewer must offer a morally acceptable reason for the accused’s behavior. The interviewer cannot convey an opinion that the accused is a “bad person.” Guilty people almost never make an admission under such conditions. To obtain an admission, the interviewer must be firm, but they must also project compassion, understanding, and empathy.

Even when the interviewer presents the accused with an appropriate rationalization, it is likely that they will continue to deny culpability. In these situations, the interviewer must quickly and decisively defuse these alibis by convincing the accused of the weight of the evidence against them. Interviewers can often defuse alibis by displaying available evidence that specifically contradicts the alibis. The physical evidence—usually documents in fraud matters—should generally be displayed one piece at a time, in reverse order of importance. In this way, the accused does not immediately know the full extent of the evidence.

Question 78

The verbal and nonverbal clues to deception are produced primarily by stress.

A. True
B. False

Answer 78

A. True

See pages 3.353-3.354 in the Fraud Examiner’s Manual

In most people, lying produces stress. The human body will attempt to relieve this stress (even in practiced liars) through verbal and nonverbal clues.

Conclusions concerning behavior must be tempered by a number of factors. The physical environment in which the interview is conducted can affect behavior. If the respondent is comfortable, they might exhibit fewer behavioral quirks. The more intelligent the respondent, the more reliable verbal and nonverbal clues will be. If the respondent is biased toward the interviewer, or vice versa, this will affect their behavior.

When detecting deception during an interview, the interviewer must remember that the interviewee or target might already be under stress because of the situation. While lying and deception do indeed cause stress, it is not necessarily true that all stress exhibited during an interview is caused by lying. An honest interview subject might feel stress simply by being asked pointed questions about uncomfortable subjects.

Question 79

Which of the following will affect the behavioral clues that might indicate whether a person is lying?

A. Mental illness
B. Drugs and alcohol
C. Cultural differences
D. All of the above

Answer 79

D. All of the above

See pages 3.354 in the Fraud Examiner’s Manual

Behavioral clues are harder to read when the respondent is mentally unstable or is under the influence of alcohol or drugs. That is, people who are mentally unstable or are under the influence of drugs will be unsuitable to interview, and the behavioral clues of such individuals are unreliable.

Racial, ethnic, cultural, and economic factors should also be carefully considered when observing a respondent’s behavior. Some cultures, for example, discourage looking directly at someone. Other cultures use certain body language that might be misinterpreted.

Question 80

The proper way an interviewer should establish a baseline with a witness is by asking:

A. Questions designed to produce stress in the witness
B. Noncritical questions on background information
C. Questions designed to make the witness lie
D. None of the above

Answer 80

B. Noncritical questions on background information

See pages 3.341 in the Fraud Examiner’s Manual

The best way to establish a baseline with a witness is by asking noncritical questions on background information, place of employment, and other similar areas, particularly if the interviewer already knows the correct answers to the questions. If the witness displays general nervousness or other verbal and nonverbal clues during the phase of questioning intended to establish a baseline, subsequent indicators might not be reliable. The key is to observe changes in behavior when pertinent questions are asked. Examples of noncritical questions include “When did you start with the company?” and “How long is your commute?”

Question 81

Which of the following is the BEST example of an open question?

A. “You received a promotion last month, didn’t you?”
B. “Why did you decide to transfer to this department?”
C. “When did you start working at XYZ Company?”
D. “Aren’t you responsible for reviewing time sheets?”

Answer 81

B. “Why did you decide to transfer to this department?”

See pages 3.337-3.338 in the Fraud Examiner’s Manual

“Why did you decide to transfer to this department?” is an open question. Open questions are those worded in a way that makes it difficult for the respondent to answer “yes” or “no.” Also, the answer to an open question is not dependent on the question. The typical open question calls for a monologue response, and it can be answered in several different ways.

“When did you start working at XYZ Company?” is a closed question. Closed questions are those that require a precise answer, such as “yes” or “no.” Closed questions also deal with specifics, such as amounts, dates, and times.

Both “Aren’t you responsible for reviewing time sheets?” and “You received a promotion last month, didn’t you?” are leading questions. Leading questions are questions that are framed in a way that evokes a specific reply from the respondent; they are questions that contain a suggested answer. Most commonly, leading questions are used to confirm facts already known. This type of question gives the subject much less room to maneuver than an open or closed question because these questions direct the subject to answer in a particular way. Leading questions imply that the interviewer already knows the answer, asking the subject to confirm what is already known.

Question 82

In admission-seeking interviews, an innocent person often reacts differently to the initial accusation than a culpable person. Which of the following reactions to the initial accusation is common to an innocent person?

A. Weak denials
B. Mumbled denials
C. Strong denials
D. Silence

Answer 82

C. Strong denials

See pages 3.406 in the Fraud Examiner’s Manual

When accused of wrongdoing, guilty individuals often react with silence. If the accused does deny culpability, those denials are usually weak. In some cases, the accused almost mumbles the denial. It is common for culpable individuals to avoid outright denials. Rather, they will give reasons why they could not have committed the act in question.

Conversely, innocent people sometimes react with genuine shock at being accused. It is not at all unusual for an innocent person, wrongfully accused, to react with anger. In contrast to the guilty person, the typical innocent person will strongly deny committing the act or acts in question.

Question 83

In admission-seeking interviews, the transition from the accusatory process to the verbal statement of admission should occur when the accused provides the first detailed information about the offense.

A. True
B. False

Answer 83

A. True

See pages 3.418 in the Fraud Examiner’s Manual

In an admission-seeking interview, the interviewer should transition to the verbal statement of admission when the accused provides the first detailed information about the offense. There are three basic approaches to obtaining the verbal admission: chronologically, by transaction, or by event. The approach taken should be governed by the circumstances of the case. Once a verbal admission is obtained, the interviewer must probe gently for additional details—preferably details that only the subject knows.

Question 84

A(n) ______________ interview is one that has the potential to bring about strong emotional reactions in the respondent.

A. Chronemic
B. Evasive
C. Volatile
D. None of the above

Answer 84

C. Volatile

See pages 3.347 in the Fraud Examiner’s Manual

A volatile interview is one that has the potential to bring about strong emotional reactions in the respondent. Typical volatile interviews involve close friends and relatives of a subject, co-conspirators, and similar individuals. The personality characteristics of those involved in the volatile interview vary. Some individuals are naturally resentful of authority figures, such as fraud examiners and law enforcement officers. A target’s friends, relatives, and romantic interests often make for a difficult interview. They perceive that the fraud examiner is deliberately targeting someone close to them.

Question 85

Which of the following is the BEST example of a closed question?

A. “What can you tell me about the process of opening the store?”
B. “What happened during your shift when you opened the store?”
C. “When did you open the store that morning?”
D. “Were you only asked to open the store because no one else was available?”

Answer 85

C. “When did you open the store that morning?”

See pages 3.337-3.338 in the Fraud Examiner’s Manual

“When did you open the store that morning?” is a closed question. Closed questions are those that require a precise answer, such as “yes” or “no.” Closed questions also deal with specifics, such as amounts, dates, and times. As much as possible, closed questions should be avoided in the informational part of the interview. They are used extensively in closing questions. Examples of closed questions include “Have you ever had a key to the mail room?” and “How many years have you been in charge of the department?”

“What can you tell me about the process of opening the store?” and “What happened during your shift when you opened the store?” are both open questions. Open questions are those worded in a way that makes it difficult for the respondent to answer “yes” or “no.” Also, the answer to an open question is not dependent on the question. The typical open question calls for a monologue response, and it can be answered in several different ways.

“Were you only asked to open the store because no one else was available?” is a leading question. Leading questions are questions that are framed in a way that evokes a specific reply from the respondent; they are questions that contain a suggested answer. Most commonly, leading questions are used to confirm facts already known. This type of question gives the subject much less room to maneuver than an open or closed question because these questions direct the subject to answer in a particular way. Leading questions imply that the interviewer already knows the answer, asking the subject to confirm what is already known. They can be particularly effective in interview situations.

Question 86

An interview subject’s intelligence level rarely affects an investigator’s ability to accurately discern behavioral clues during an interview.

A. True
B. False

Answer 86

B. False

See pages 3.353 in the Fraud Examiner’s Manual

Conclusions concerning behavior must be tempered by a number of factors. The more intelligent the respondent, the more reliable verbal and nonverbal clues will be.

A higher level of intelligence breeds more consistency in responses from which deviations are more clearly recognizable. People of lower intelligence tend to be more erratic in their behavior, and thus meaningful deviations are more difficult to discern.

Question 87

Which of the following is an important consideration when preparing a room for an admission-seeking interview?

A. Whether the door is locked
B. Whether the room provides sufficient privacy
C. Whether there are any pictures or wall hangings
D. All of the above

Answer 87

D. All of the above

See pages 3.403 in the Fraud Examiner’s Manual

When preparing a room for an admission-seeking interview, it is important that the interviewer consider how private the room is since the location should establish a sense of privacy. The door should be closed but not locked, there should be no physical barriers preventing the target from leaving, and the suspect should be made aware that they are free to leave.

Distractions should be kept to a minimum. Ideally, there should be no photographs or other objects in the room. Chairs should be placed about four to six feet apart (i.e., 1.2–1.8 meters apart), and the accused should not be permitted to sit behind any physical barriers, such as chairs, tables, or desks. This is to prevent a physical barrier from becoming a psychological barrier that might inhibit responses from the accused.

Question 88

Asha, an employee at Gamma Corp., is suspected of embezzlement. During an admission-seeking interview with Asha, the investigator states, “You have been working at Gamma longer than most employees. If the company compensated you properly for your years of loyalty, you would not have had to do this. That is how you feel, isn’t it?” This technique is known as:

A. Unfair treatment
B. Altruism
C. Financial problems
D. Aberration of conduct

Answer 88

A. Unfair treatment

See pages 3.409-3.410 in the Fraud Examiner’s Manual

There are numerous rationalizations used by employees to explain away criminal misconduct and fraud, including unfair treatment. The accused will use almost any rationalization that does not portray them as a “bad person.” The sensitive interviewer can take advantage of these feelings by suggesting that the accused is a victim. Examples might include “I don’t think the company has paid you what you are really worth, and that’s the way you feel, too, isn’t it?” or “I think the company brought this on itself. If you had been fairly treated, this would not have happened; don’t you agree?”

Question 89

Maria, a fraud investigator, has arrived unannounced at Johnson’s office to conduct an interview. When Maria requests that Johnson take some time to talk to her about some issues she’s looking into, Johnson replies that he’s too busy to be interviewed. How should Maria handle this situation?

A. Stress that the interview will not be difficult
B. Explain that the interview will be short
C. Emphasize that his help is needed
D. Any of the above

Answer 89

D. Any of the above

See pages 3.344 in the Fraud Examiner’s Manual

When the interviewer contacts the respondent without a scheduled appointment, there is a possibility that the respondent will be too busy at the moment to cooperate. “I’m too busy” is also used as an excuse for the real source of the person’s resistance, which might be lethargy, ego threat, or dislike of talking to strangers. These situations can be defused by the interviewer stressing that:

• The interview will be short.
• The interviewer is already there.
• The project is important.
• The interview will not be difficult.
• The interviewer needs help.

Question 90

Which of the following is a good practice for taking notes during an interview?

A. Make necessary additions to the interview notes within several weeks of the interview.
B. Write down verbatim all responses given by the subject.
C. Record any opinions or impressions regarding each witness’s guilt or innocence.
D. Avoid slowing down the interview process to take notes.

Answer 90

D. Avoid slowing down the interview process to take notes.

See pages 3.322-3.323 in the Fraud Examiner’s Manual

When taking notes during an interview, fraud examiners should follow a few basic rules. First, they should take accurate notes during the interview, but they do not necessarily need to be verbatim. Taking too many notes will make the interview process cumbersome, and it might inhibit the respondent. Fraud examiners should also avoid slowing down the interview process for note-taking. Instead, they should write down keywords or phrases, such as those that identify the people, locations, actions, and times mentioned by the interviewee, and then go back over the details at the end of the interview. In general, it is better to err on the side of taking too few notes rather than too many. These notes should be expounded as soon as possible following the interview to ensure accuracy. Finally, fraud examiners should avoid making notes regarding their overall opinions or impressions of the subject. Fraud examiners should not offer opinions about the legal guilt or innocence of any person. Such notes can cause credibility problems if they are later produced in court.

Question 91

In interview situations, the process of observing behavior before asking critical questions is called:

A. Kinetic analysis
B. Establishing a baseline
C. Deception analysis
D. None of the above

Answer 91

B. Establishing a baseline

See pages 3.341 in the Fraud Examiner’s Manual

Establishing a baseline is the process of observing behavior before critical questions are asked, as opposed to doing so during questioning. Establishing a baseline should be a routine part of all interviews. People who seem truthful will answer questions one way; those who seem untruthful will generally answer them differently.

Question 92

In interview situations, _____________ questions consist of a series of interrelated questions and frequently require more than one answer, such as, “What are your duties here, and how long have you been employed?”

A. Complex
B. Closed
C. Reverse
D. None of the above

Answer 92

A. Complex

See pages 3.338 in the Fraud Examiner’s Manual

Complex questions are those that consist of a series of interrelated questions, such as, “What are your duties here, and how long have you been employed?” Complex questions and statements are too complicated to be easily understood, cover more than one subject or topic, require more than one answer, or require a complicated answer. Therefore, fraud examiners should avoid asking complex questions.

Question 93

Simone, a manager at a major company, is suspected of financial statement fraud. During an admission-seeking interview with Simone, the investigator states, “A lot of employees count on the company doing well. I know you only did this to help the company succeed. Isn’t that right?” This technique is known as:

A. Depersonalizing the victim
B. Altruism
C. Extrinsic rewards
D. Genuine need

Answer 93

B. Altruism

See pages 3.409, 3.414 in the Fraud Examiner’s Manual

If the subject does not confess to the misconduct when faced with direct accusations, the interviewer should try to convince the respondent that confessing is the most advantageous option available. To do this, the interviewer must offer a morally acceptable reason that allows the accused to confess to a misdeed without feeling ashamed. In many cases, the moral seriousness of the matter can be reduced by claiming the action was for the benefit of others. This is especially true if the accused views themselves as a caring person. This is known as altruism. In establishing this rationalization, the interviewer might say something similar to the following examples: “I know you didn’t do this for yourself. I have looked into this matter carefully, and I think you did this to help your husband, didn’t you?” or “You have a big responsibility in this company. A lot of people depend on you for their jobs. I just know you did this because you thought you were doing the right thing for the company, didn’t you?”

Question 94

Sari, a Certified Fraud Examiner (CFE) for the XYZ Corp., is in the process of interviewing Alfred, a parts clerk, about a theft of inventory. Sari is unsure if Alfred is involved in the theft. In concluding the interview, Sari should:

A. Review the key points discussed during the interview to ensure she has understood everything Alfred has said.
B. Avoid revisiting any previously discussed topics to prevent Alfred from knowing what Sari considers important.
C. Tell Alfred that there is not enough evidence to consider him a suspect and therefore he is free to leave.
D. Tell Alfred in an authoritative tone that he could be considered a suspect in the theft to emphasize the severity of the situation.

Answer 94

A. Review the key points discussed during the interview to ensure she has understood everything Alfred has said.

See pages 3.327, 3.350 in the Fraud Examiner’s Manual

It is not unusual for the interviewer to have misunderstood or misinterpreted the respondent’s statements. Therefore, to ensure that the interviewer understood the information that the witness provided, they should review the key facts during the closing phase of the interview. However, the interviewer should not attempt to revisit all the information provided by the subject, only the facts that are most relevant.

In addition to reconfirming facts, closing questions seek to close the interview positively. In routine interviews, closing questions should be used to gather additional facts and conclude the interview in a manner that maintains goodwill in case further questioning is necessary.

Question 95

When attempting to defuse a suspect’s alibi in a case where there is little physical evidence, a recommended technique is to discuss the accused’s prior deceptions.

A. True
B. False

Answer 95

A. True

See pages 3.416 in the Fraud Examiner’s Manual

A useful technique to defuse an alibi is to discuss the accused’s prior deceptions. The goal is to appeal to the accused’s logic and not to scold or degrade. This technique is particularly useful in cases with a lack of physical evidence. As with other interview situations, the word lying should be avoided.

Question 96

When conducting an investigation, it is often advantageous to administer interviews with two or more subjects simultaneously due to the likelihood that they will denounce each other.

A. True
B. False

Answer 96

B. False

See pages 3.323-3.324 in the Fraud Examiner’s Manual

One of the basic rules of interviewing is to question only one person at a time. When two subjects are questioned simultaneously, the testimony of one respondent invariably influences the testimony of the other. There are few absolute rules of interviewing, but this is one of them.

Another basic rule is to conduct interviews under conditions of privacy. The interview is best conducted out of the sight and sound of friends, relatives, or fellow employees, as people are very reluctant to furnish information if others might be able to hear the conversation. Ideally, an interview should take place in an environment that can be controlled by the interviewer.

Question 97

Black, a Certified Fraud Examiner (CFE), is conducting an admission-seeking interview of Red, a fraud suspect. Black asks Red, “Did you do this because you were mad, or was there a reason you did this?” Red replies with “I had a reason.” Which of the following is the MOST APPROPRIATE response for Black to make?

A. “I’m glad you had a good reason to do this.”
B. “It couldn’t have been a very good reason.”
C. “I don’t believe you.”
D. “Everyone says that.”

Answer 97

A. “I’m glad you had a good reason to do this.”

See pages 3.417-3.418 in the Fraud Examiner’s Manual

Once the accused makes a commitment to confess, the interviewer should reinforce their decision by returning to the theme of their rationalization. This helps the accused feel comfortable and lets them know that the interviewer is not judging them. For example: “I am glad to hear that you had a reason to do this. That reinforces what I thought all along—that you were caught up in extraordinary circumstances. When was the first time you did it?”

Question 98

For a signed, written confession to be admissible in court, the statement must be:

A. In the handwriting of the declarant
B. Signed by at least two witnesses
C. Notarized
D. None of the above

Answer 98

D. None of the above

See pages 3.428 in the Fraud Examiner’s Manual

There is no legal requirement that a statement must be completely in the handwriting or wording of the declarant. A statement’s wording should be precise, and because the fraud examiner usually knows how to draft a valid statement, it is generally not a good idea to let a fraudster draft the statement. In addition, while there is no legal requirement for the written statement to be signed by at least two witnesses, it is recommended that two people witness the signing of a statement.

Question 99

Baker, a Certified Fraud Examiner (CFE), is interviewing Green. As the interview progresses, Baker can tell that Green is becoming uncomfortable at the sensitive nature of the questions. What should Baker do next?

A. Ask a nonsensitive question and return later to the sensitive questions.
B. Stop asking the sensitive questions altogether.
C. Continue to ask sensitive questions.
D. Explain that everything said during the interview will remain confidential.

Answer 99

A. Ask a nonsensitive question and return later to the sensitive questions.

See pages 3.331 in the Fraud Examiner’s Manual

Sensitive questions should be avoided until well into the interview. Even then, such questions should be asked only after careful deliberation and planning. If the respondent starts to become uncomfortable with the questioning, the interviewer should move into a different area and approach the sensitive question later from a different vantage point.

Question 100

Which of the following is the MOST APPROPRIATE type of question for fraud examiners to ask during interviews to confirm facts that are already known?

A. Narrative
B. Open
C. Leading
D. None of the above

Answer 100

C. Leading

See pages 3.337-3.338 in the Fraud Examiner’s Manual

Leading questions are questions that are framed in a way that evokes a specific reply from the respondent; they are questions that contain a suggested answer. Most commonly, leading questions are used to confirm facts already known. This type of question gives the subject much less room to maneuver than an open or closed question because these questions direct the subject to answer in a particular way. Leading questions imply that the interviewer already knows the answer, asking the subject to confirm what is already known. They can be particularly effective in interview situations.

Examples of leading questions include: “So there have been no changes in the operation since last year?”; “Are you still employed by the Westbrook Furnishings Corporation?”; “You got promoted, right?”; and “Don’t you get your income from various sources?”

Question 101

For purposes of evaluating deception, illustrators can be defined as:

A. Motions made primarily with the hands to demonstrate a point
B. Verbal statements that illustrate a point
C. Expressions made with the face, the meanings of which are clearly understood
D. None of the above

Answer 101

A. Motions made primarily with the hands to demonstrate a point

See pages 3.358 in the Fraud Examiner’s Manual

Illustrators are motions made primarily with the hands that demonstrate points when talking. During nonthreatening questions, the respondent’s illustrators might occur at one rate, and during threatening questions, the respondent’s use of illustrators might increase or decrease.