Topic 8 Inquiry Methods and Fraud Reports

Question 1

Which of the following is not a method of honesty testing?
a. Graphology.
b. Voice stress analysis.
c. Body language test.
d. Pencil-and-paper test.

Answer 1

c)

Question 2

Interviews should not be conducted with:
a. Suspects.
b. Co-workers.
c. Clients.
d. Interviews can be conducted with all of the above.

Answer 2

d)

Question 3

People in the rationalization stage of reaction to a fraud:
a. Make great interviewees because they want to punish the suspect.
b. Want to give the suspect one more chance.
c. Believe without a doubt that the suspect is guilty.
d. Have no sympathy for the suspect.

Answer 3

b)

Question 4

Planning for interviews should not involve:
a. Judging the guilt of the suspect based on available documents.
b. Establishing a location and time for the interview.
c. Ascertaining in advance as many facts as possible about the offense.
d. Understanding the attitude of the interviewee.

Answer 4

a)

Question 5

Confrontational interviews should usually be conducted when:
a. Police decide that the suspect is guilty.
b. The examiner is starting the investigation.
c. All other investigative procedures have been completed.
d. The investigation is taking too long.

Answer 5

c)

Question 6

Which of the following is not an inquiry technique that should be used by interviewers?
a. Use short questions, confined to one topic.
b. Maintain full control of the interview.
c. Point out some, but not all, of the circumstantial evidence.
d. All of the above are good inquiry techniques in an interview.

Answer 6

d)

Question 7

Which of the following honesty testing techniques deals with the study of handwriting for the purpose of character analysis?
a. Polygraph.
b. Graphology.
c. Pencil-and-paper test.
d. Voice stress.
e. None of the above.

Answer 7

b)

Question 8

Which of the following traits do polygraphs not measure when testing for stress?
a. Pulse rate.
b. Blood pressure.
c. Galvanic skin response.
d. Respiration.
e. All of the above are traits measured during a polygraph test.

Answer 8

e)

Question 9

Interviewing is:
a. The systematic questioning of individuals who have knowledge of events, people, and evidence involved in a case under investigation.
b. The process of answering questions from an interviewer for the purpose of finding a job.
c. By far the most common technique used in investigating and resolving fraud.
d. Both a and c.
e. None of the above.

Answer 9

d)

Question 10

Which of the following is the typical sequence of reactions to a crisis?
a. Anger, denial, rationalization, depression, acceptance.
b. Rationalization, denial, anger, depression, acceptance.
c. Denial, anger, rationalization, depression, acceptance.
d. Depression, denial, anger, rationalization, acceptance.
e. None of the above.

Answer 10

c)

Question 11

Which of the following reactions frequently involves appearing temporarily stunned, insisting there is some mistake, or not comprehending what has been said?
a. Anger.
b. Denial.
c. Rationalization.
d. Depression.
e. Acceptance.

Answer 11

b)

Question 12

Which of the following is a characteristic of a good interview?
a. Make the interview as concise as possible.
b. The interviewer should announce his or her bias at the outset, because the interviewee will cooperate better when the interviewee knows the type of information the interviewer is seeking.
c. Friendly interviewees appear very helpful, but they may have hidden motives and may provide bad information.
d. It is important to schedule interviews ahead of time, especially if you are planning to interview a potentially hostile interviewee.

Answer 12

a)

Question 13

Each of the following is a clue that an interviewee is dishonest except:
a. Upon repeated accusations, a dishonest person’s denials become more vehement.
b. In order to add credibility to false statements, liars request that the interviewer obtain character testimony from other people.
c. Liars often refuse to implicate possible suspects—or, in other words, honest people are more willing to name others involved in misdeeds.
d. Dishonest people frequently cover their mouths with their hands or fingers during deception.

Answer 13

a)

Question 14

Which of the following is something that an interviewee might do or feel while in the denial phase?
a. Insult, harm, or slander.
b. Attempt to justify the act.
c. Become sad, withdraw, or lose interest.
d. Not comprehend what has been said.

Answer 14

d)

Question 15

Which of the following is not a good thing to do during an interview? a. Conduct the interview in private.
b. Establish the purpose of the interview.
c. Interview more than one person at once.
d. Do not invade body space.

Answer 15

c)

Question 16

A signed statement should include all of the following except:
a. A statement that the fraudster knew the conduct was wrong and intended to commit the act.
b. The date the fraudster was hired by the company.
c. Approximate amount of losses.
d. Approximate date of the offense.

Answer 16

b)

Question 17

Nonverbal cues of deception include all of the following except:
a. Repetition of the question.
b. Dilated pupils.
c. Raised chin.
d. Decreased foot and leg movements.

Answer 17

a)

Question 18

Which of the following is a characteristic of a good interviewer?
a. One who interrupts respondents as key issues are introduced
b. One who can get others to open up and share information
c. One who interviews in a highly formal/professional manner
d. One who indicates the expected answer during questioning

Answer 18

b)

Question 19

What is meant by calibrating?
a. The use of interpersonal space to convey meaning
b. Process of observing behavior before critical questions are asked
c. The strongest response to a threatened ego
d. Reinforcement of the confessor’s decision

Answer 19

b)

Question 20

Which of the following is NOT a characteristic of a good interview?
a. The interview is of sufficient length and depth to get relevant facts
b. The interview focuses on pertinent information
c. The interview is conducted as far away from the event as possible
d. The interviewer avoids extraneous facts

Answer 20

c)

Question 21

Which of the following practices should interviewers avoid?
a. Taking detailed notes
b. Taping the interview with permission
c. Maintaining eye contact
d. Documenting the results

Answer 21

a)

Question 22

Which of the following is NOT a good thing to do during an interview?
a. Conduct the interview in private
b. Establish the purpose of the interview
c. Interview more than one person at once
d. Get a commitment for assistance

Answer 22

c)

Question 23

Most nonverbal clues fall into one of four categories. Which is NOT one of those categories?
a. Paralinguistics
b. Kinetics
c. Catharsis
d. Proxemics

Answer 23

c)

Question 24

Which of the following is the correct sequence of reaction to a crisis?
a. Denial, anger, rationalization, depression, acceptance
b. Rationalization, anger, depression, acceptance, denial
c. Denial, depression, anger, rationalization, acceptance
d. Rationalization, depression, anger, denial, acceptance

Answer 24

a)

Question 25

During which stage of the reactionary process is the most useful time to interview individuals who are dealing with
fraud?
a. acceptance
b. bargaining
c. depression
d. anger

Answer 25

a)

Question 26

Which is NOT a verbal clue that would place suspicion on an interviewee?
a. Frequent reference to good character
b. Eagerness to end the interview
c. Avoidance of emotionally charged terms
d. Answering with a question

Answer 26

b) Guilty interviewees are often reluctant to end the interview without first convincing the interviewer they’re innocent.

Question 27

Which of the following is the most common inquiry method?
a. Graphology
b. Pencil-and-paper tests
c. Interviewing
d. Polygraphs

Answer 27

c)

Question 28

Interviewers should demonstrate all but which characteristic during interviews?
a. Be businesslike
b. Politeness toward the perpetrator
c. Courtesy
d. Admiration of the perpetrator

Answer 28

d)

Question 29

Interviewers who use pacing are employing a form of ____.
a. kinetic communication
b. paralinguistic communication
c. chronemic communication
d. proxemic communication

Answer 29

c. Pacing is a type of chronemic communication.

Question 30

Interviewers can control the length of time after respondents finish a sentence before they pose another question.
What is this called?
a. Theme development
b. Manipulator
c. Admission-seeking
d. Silent probe

Answer 30

d. Silent probes are a technique to control the length of time between questions.

Question 31

Which of the following is the last stage in the model for understanding an individual’s reaction to crisis?
a. Depression
b. Anger
c. Rationalization
d. Acceptance

Answer 31

d)

Question 32

Which of the following is the last attempt of the affected group to return to the previous psychological equilibrium
while reacting to a crisis?
a. Depression
b. Anger
c. Rationalization
d. Acceptance

Answer 32

c)

Question 33

The most effective theme of interviewing is:
a. that help is being sought.
b. the motive for committing the fraud.
c. the fraud and how it evolved.
d. the suspect’s involvement in the fraud

Answer 33

a)

Question 34

The use of body movement to convey meaning is called:
a. proxemic communication.
b. kinetic communication.
c. chronemic communication.
d. paralinguistic communication.

Answer 34

b)

Question 35

Assessment questions seek to:
a. gain an admission.
b. find out specific details related to the fraud.
c. establish credibility of the respondent.
d. obtain facts previously unknown.

Answer 35

c)

Question 36

Which of the following is something that an interviewee might do or feel while in the denial phase?
a. Insult, harm, or slander the interviewer
b. Attempt to justify the act of the fraud
c. Become sad, withdrawn, or lose interest in the environment
d. Fail to comprehend what has been said

Answer 36

d) Either consciously or unconsciously, a person may not comprehend what has
been said.

Question 37

While reacting to crisis, an individual usually becomes withdrawn, uncooperative, or embarrassed in the ____ stage.
a. denial
b. anger
c. rationalization
d. depression

Answer 37

d)

Question 38

Which of the following is NOT considered a normal response to an ego threat?
a. Repression
b. Disapproval
c. Loss of status
d. Anger

Answer 38

d. . Anger is not a normal response to an ego threat.

Question 39

In potentially volatile interviews it is best to:
a. have two interviewers conduct the interview.
b. use direct questions to illicit quick responses.
c. schedule the time for the interview well in advance.
d. take the hostility personally and respond forcefully.

Answer 39

a) There is strength in numbers when confronting a potentially hostile interview.

Question 40

Which response to ego threats is characterized by respondents not only refusing to admit information, but also refusing
to admit the information inwardly?
a. Denial
b. Disapproval
c. Loss of status
d. Repression

Answer 40

d)

Question 41

Which of the following elements is NOT true regarding a confession?
a. The confession can be changed in ink, with everyone’s initials.
b. A written confession must be completely voluntary.
c. A written confession must contain elements of the fraudster’s intent.
d. A written confession should be drafted by the confessor.

Answer 41

d. A written confession should be drafted by the interviewer, not the confessor.

Question 42

Which of the following statements is true of an admission-seeking interview?
a. There must be physical barriers preventing the target from leaving.
b. Private investigators must give Miranda warnings before this interview.
c. Attorneys should be present and be allowed to ask questions or object.
d. The interviewer should attempt to interrupt any denial.

Answer 42

d. This is the correct technique to use in an admission-seeking interview.

Question 43

Identify an appropriate accusation in an effective admission-seeking interview.
a. We have reason to believe that you took company assets without permission. Do you agree?
b. We have clearly established that you made a false entry in the books.
c. We understand you may have taken money from a vendor.
d. We have been investigating the kickback fraud, and your responses so far indicate that you lied.

Answer 43

b)

Question 44

Which of the following is NOT a verbal clue that someone may be lying?
a. Expressing reluctance to terminate the interview
b. Showing intolerance for shady conduct of others
c. Asking for the question to be repeated
d. Refusal to implicate other suspects

Answer 44

b. This is not a verbal clue that someone may be lying.

Question 45

Probably the most common rationalization for criminal activity in general (and fraud in particular) is in fraudsters’
attempts to ______.
a. be efficient
b. victimize others
c. gain sympathy
d. achieve equity

Answer 45

d)

Question 46

Which of the following words should be avoided during the introductory phase of an interview?
a. Inquiry
b. Review
c. Interview
d. Shortage

Answer 46

c)

Question 47

In the sequence of reactions to a crisis, which is the most dangerous time in which to attempt to solve a fraud?
a. Denial
b. Anger
c. Depression
d. Rationalization

Answer 47

b)

Question 48

Use of all of the following methods will help an interviewer deal with difficult people, EXCEPT:
a. disarm the interviewee using surprise.
b. change tactics.
c. make it hard to say “no.”
d. don’t react.
e. try to reason.

Answer 48

e)

Question 49

Which of the following is an element of a leading question?
a. It is not easily understood.
b. It contains the answer in it.
c. It should not confirm known facts.
d. It is confusing and suggests an answer opposite to the correct one.

Answer 49

b)

Question 50

Which of the following is an example of an informational question that you should avoid?
a. “How are you doing this morning?”
b. “All right, so you started here in June 2003—after working for Caterpillar—to the best of your recollection?”
c. “Didn’t you suspect that something wasn’t right?”
d. “What are your duties here?”
e. “Please tell me about your job.”

Answer 50

c)

Question 51

Which of the following involves the use of volume, pitch, and voice quality to convey meaning?
a. Chronemic communication
b. Paralinguistic communication
c. Kinetic communication
d. Proxemic communication

Answer 51

b)

Question 52

Which of the following refers to the use of time in interpersonal relationships to convey meaning, attitudes, and
desires?
a. Chronemic communication
b. Paralinguistic communication
c. Kinetic communication
d. Proxemic communication

Answer 52

a)

Question 53

Which of the following refers to the use of interpersonal space to convey meaning?
a. Chronemic communication
b. Paralinguistic communication
c. Kinetic communication
d. Proxemic communication

Answer 53

d)

Question 54

All of the following are true concerning polygraphs EXCEPT:
a. polygraphs are more complicated than voice stress analyzers.
b. polygraphs rarely detect psychopathic liars.
c. individuals who pass polygraph tests are probably innocent.
d. investigators must inform suspects that they do not have to take a polygraph.
e. failure to pass a polygraph test implies certain guilt.

Answer 54

e)

Question 55

Which of the following observations concerning pencil-and-paper honesty tests is true?
a. They are written tests that require elaborate answers.
b. They are used most frequently as crime-determining tools.
c. They are considered to be 90 to 98 percent accurate.
d. They are ideal for applicant screening.

Answer 55

d)

Question 56

Which of the following is the most efficient method to reduce the negative effects of the etiquette barrier of
communication?
a. Showing a generally accepting and sympathetic attitude toward respondents
b. Telling respondents that information will be handled confidentially
c. Selecting an appropriate interviewer and a proper setting for the interview
d. Convincing respondents that the interview is a good use of their time

Answer 56

c)

Question 57

Each of the following is a clue that an interviewee is dishonest EXCEPT:
a. interviewee’s denials become more vehement as accusations are repeated.
b. interviewee requests that the interviewers obtain character testimony from other people.
c. interviewee refuses to implicate possible suspects.
d. interviewee frequently covers his/her mouth with hand or fingers.

Answer 57

a)

Question 58

The feeling of a general manager that he can “save” an employee who has committed a fraudulent act is an indication
that the manager is in the _____ stage of crisis reaction.
a. denial
b. acceptance
c. depression
d. rationalization

Answer 58

d)

Question 59

What is graphology?
a. The study of handwriting for the purpose of character analysis
b. Voice stress analysis for the purpose of determining whether a person is lying
c. Using answers to pencil-and-paper honesty tests to elicit information about a person’s honesty and code of
ethics
d. The process by which we obtain release from unpleasant emotional tensions by talking about the source of
these tensions

Answer 59

a)

Question 60

Which of the following is a facilitator of communication?
a. Threatened egos
b. Trauma
c. Catharsis
d. Unconscious behavior

Answer 60

c)

Question 61

Which of the following is NOT an important closing question?
a. “In conclusion, what do you think should be done?”
b. “Do you know anyone else I should talk to?”
c. “Is there anything I have forgotten to ask that you believe would be relevant?”
d. “If I need to talk to you again, would that be all right?”

Answer 61

a)

Question 62

Which of the following would be considered a form of denial while reacting to a crisis?
a. A person’s anger is directed at friends, relatives, or co-workers.
b. After an attempt to resolve the problem fails, a person’s hope diminishes.
c. A person’s anger is replaced by disappointment or embarrassment.
d. A person insists that there is some mistake.

Answer 62

d)

Question 63

Which of the following is true concerning signed statements?
a. Allow the confessor to draft the statement.
b. The statement’s wording should be general.
c. Declarants should read and sign the statement without undue delay.
d. Two people are legally required to witness the signing of the statement.

Answer 63

c)

Question 64

A person will generally confess when:
a. the interviewer repeatedly states that he or she is guilty.
b. they perceive the benefits of confession outweigh the penalties.
c. the accuser has evidence that the likelihood is high that the accused has committed an offense.
d. the accuser conveys that the accused is really a “good person” who made a mistake.

Answer 64

b)

Question 65

Which of the following is a basic strategy of admission-seeking interviews?
a. Schedule them in such a fashion that shortage of time becomes a major factor.
b. Express outrage, or moral condemnation, about the confessor’s actions.
c. Maximize sympathy and minimize the perception of moral wrongdoing.
d. Convey to the accused that he or she is a “bad person.”

Answer 65

c)

Question 66

Which of the following is NOT a technique for refuting an alibi?
a. Display physical evidence in reverse order of importance
b. Discuss specific witnesses to the crime by name
c. Discuss deceptions
d. Present alternatives

Answer 66

b)

Question 67

Guilty people almost never confess when it is conveyed that they are what type of person?
a. Bad
b. Simply careless
c. Intelligent
d. Obviously guilty

Answer 67

a)

Question 68

The most common of all techniques used to investigate and resolve fraud is ¬¬-____.
a. interviewing
b. auditing
c. arbitration
d. invigilation

Answer 68

a)

Question 69

What is one of the most important personality traits of being an effective interviewer?
a. Introversion
b. Strict
c. Outgoing
d. Formal

Answer 69

c. Good interviewers have outgoing personalities, and they interact well with
others.

Question 70

What is the term for the process by which we obtain release from unpleasant emotional tensions by talking about the
source of these tensions.
a. Acceptance
b. Denial
c. Negation
d. Catharsis

Answer 70

d)

Question 71

____ is defined as converting concrete experiences into a higher level of generalization.
a. Deduction
b. Induction
c. Negation
d. Catharsi

Answer 71

b. This is a term for converting concrete experiences into a higher level of
generalization.

Question 72

Inferential errors fall into two categories:
a. circular reaction and identification.
b. induction and deduction.
c. denial and trauma.
d. generalization and identification.

Answer 72

b)

Question 73

Many times the information sought in an interview is closely related to the respondent’s inner conflicts and tensions.
Which element of conversation will be helpful in releasing this?
a. Expression
b. Deduction
c. Rituals
d. Therapy

Answer 73

d)

Question 74

Which element of conversation is used mostly to convince respondents of the legitimacy of the interview?
a. Expression
b. Persuasion
c. Rituals
d. Therapy

Answer 74

b)

Question 75

When is the fraud report prepared?
a. As an ongoing part of the investigation
b. In the final stage of the investigation
c. Once the investigation is completed
d. As soon as the suspect orally confesses

Answer 75

c)

Question 76

Which of the following is NOT included in the fraud report?
a. Recommendations for control improvement
b. Recommendations for legal action against the suspect(s)
c. All pertinent findings
d. All conclusions made by the investigator

Answer 76

b)

Question 77

Which of the following best states what should be included in the fraud report?
a. References to all evidence supporting the allegation(s)
b. Disclose that guilt was clearly demonstrated if a confession is included
c. References to all actions by the suspect that prove guilt
d. Disclosures of the conclusive evidence of guilt

Answer 77

a)

Question 78

____ is the unconscious behavior of an individual characterized by an immediate, unplanned response of one person
to the subliminal, nonverbal clues of another person.
a. Custom
b. Habit
c. Circular reaction
d. Acute emotional crisis

Answer 78

c)

Question 79

What type of statement indicates that an individual has made the subconscious decision to confess?
a. Verbal confession
b. Benchmark admission
c. Refutation of alibis
d. Silent acknowledgement

Answer 79

b)