Investigation Procedures

Question 1

What is an EXPERT REPORT?

Answer 1

provide particular information about their qualifications, their opinions, the bases of those opinions, and various other pieces of information.

purpose of an expert report is to inform the parties, the judge, and the jury (if applicable) about the expert’s opinion of the case, as well as his credibility for commenting on such issues.

Question 2

What is a FRAUD EXAMINATION REPORT?

Answer 2

documents the results of a fraud examination and is generally created by one or more critical members of the fraud examination team.

Question 3

Who should be interviewed first?

Answer 3

neutral third-party witnesses should generally be interviewed first

followed by parties suspected of complicity, starting with the least culpable and moving to the most culpable.

The primary suspect should be interviewed last.

Question 4

What is PREDICTION?

Answer 4

totality of circumstances that would lead a reasonable, professionally trained, and prudent individual to believe that a fraud has occurred, is occurring, or will occur.

asis upon which a fraud examination, and each step taken during the examination, is commenced.

Question 5

What is a FRAUD RESPONSE PLAN?

Answer 5

outlines the actions that members of an organization will take when suspicions of fraud have arisen.

the response plan should not specify how every fraud examination should be conducted.

include a range of scenarios in the response plan, taking into consideration previous frauds within the organization and fraud risks specific to the industry or business sector in which it operates.

Question 6

What is FRAUD EXAMINATION?

Answer 6

a process of resolving allegations of fraud from inception to disposition, and it is the primary function of the anti-fraud professional.

tasks include:

• Obtaining evidence
• Reporting
• Testifying to findings
• Assisting in fraud detection and prevention

Question 7

What charateristics does a well-written report contain?

Answer 7

Accuracy

Clarity

Impartiality and relevance

Timeliness

Question 8

What sections generally should be included in written fraud examination reports?

Answer 8

(1) Background; why the fraud examination was conducted
(2) Executive summary; overview of what was done during the examination process
(3) Scope; identifies the examination’s scope
(4) Approach; the approach used
(5) Findings; summarizes the investigation findings
(6) Summary; results of the fraud examination
(7) Impact; impact of any misconduct identified during the investigation.
(8) Follow-up/recommendations; If requested, related to procedures and controls

Question 9

When evidence of fraud arises, how should management respond?

Answer 9

Activating the response team

Engaging legal counsel, if necessary

Considering whether to contact insurance providers

Addressing immediate concerns (e.g., preserving relevant documents and identifying who should be informed)

Conducting an initial assessment

Documenting the initial response

Question 10

What tasks are included in the fraud examination process?

Answer 10

Obtaining evidence

Reporting

Testifying to findings

Assisting in fraud detection and prevention

Question 11

What is the FRAUD THEORY APPROACH?

Answer 11

an investigative tool designed to help fraud examiners organize and direct examinations based on the information available at the time

the fraud examiner should:

• Analyze the available data.
• Create a hypothesis.
• Test the hypothesis.
• Refine and amend the hypothesis.