Forensic Accounting

By Mary-Jo Kranacher, CPA/CFF, CFE

Chapter 9
Effective Interviewing and Interrogating
LEARNING OBJECTIVES
9-1
9-2
9-3
9-4
9-5
9-6
9-7
9-8
9-9
9-10

Describe the benefits of strong interviewing and interrogation skills.

Discuss the reasons why interviews in fraudulent financial statements and tax returns are
handled differently than interviews in other fraud examinations.
Explain some suggested approaches for conducting interviews.
Identify the five types of interview and interrogation questions.
Discuss why introductory questions are so important to an interviews success.
Compare open, closed, and leading questions.
Explain the purpose of admission-seeking questions.
Explain why it is advisable to obtain a written confession from the subject of an
investigation.
Identify some verbal clues to deception.
Describe some nonverbal clues to deception.

True/False

Answer:

9-T/F #1. An attorney will often request that the fraud professional or forensic
accountant attend the deposition of key witnesses who have knowledge of, or
should have knowledge of, the financial transactions and how they are reflected in
the books and records.
True

Answer:

9-T/F #2. In a fraud examination, evidence is usually gathered in a manner that

moves from the specific to the general.
False

Answer:

9-T/F #3. Only after suspected coconspirators have been interviewed is the person
suspected of committing the fraud confronted.
True

Answer:

9-T/F #4. With fraudulent representations such as materially misstated financial

statements and improper tax returns, the investigator starts with the suspected
perpetrator.
True
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Answer:

9-T/F #5. Taking extensive notes does not distract interviewers from their main
responsibility to watch and listen.
False

Answer:

9-T/F #6. As the fraud examiner or forensic accountant moves away from witnesses
and toward those with higher levels of culpability, the interviews are likely to be
friendly and less adversarial.
False

Answer:

9-T/F #7. During the introduction stage, the interviewer also maintains a
professional tone but importantly solicits the cooperation of the witness, subject,
or target
True

Answer:

9-T/F #8. During the body of the interview, the interviewer needs to demonstrate
patience, and should be sure to interrupt the interviewee.
False

Answer:

9-T/F #9. At a minimum, during the close of an interview, the interviewer will
review and summarize important aspects of the interview, clarifying when
necessary and asking any final questions about the interviewees responses.
True

Answer:

9-T/F #10. Interrogations, or admission-seeking interviews, are reserved for obtaining

confessions from those believed to be culpable for the acts under examination.
True

Answer:

9-T/F #11. Rationalizations provide a morally unjustifiable reason for the targets
actions.
False

Answer:

9-T/F #12. Introductory questions serve four primary purposes: providing an

introduction, establishing a rapport, between you and the subject, establishing the
theme of the interview, and observing the subjects reactions.
True

Answer:

9-T/F #13. As a general rule, private employers conducting an internal investigation

are required to give Miranda warnings.
False
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Answer:

9-T/F #14. During the admission-seeking interview, you should not make a direct
accusation of the subject.
False

Answer:

9-T/F #15. The general law of confessions requires that they be completely voluntary.
True

Answer:

9-T/F #16. When asked sensitive or emotive questions, the dishonest person typically
will change his or her posture completelyas if moving away from you.
True

Answer:

9-T/F #17. A liar often will use emotionally provocative terms such as steal, lie,
and crime.
False

Answer:

9-T/F #18. Dishonest people typically have tolerant attitudes toward illegal or
unethical conduct.
True

Answer:

9-T/F #19. Norming or calibrating is the process of observing behavior before critical
questions are asked, as opposed to doing so during questioning.
True

Answer:

9-T/F #20. Assessment questions should proceed logically from the most to the least
sensitive.
False

Multiple Choice
9-M/C #1. All of the following are several benefits of effective interviewing and
interrogation skills, EXCEPT:
A.
Reduced investigation time
B.
Increased probability of investigative success
C.
Increased time of a jury trial
D.
The elimination of innocent subjects or targets
Answer:
C

Answer:

9-M/C #2.
A.
B.
C.
D.
D

Considerations for conducting good interviews include all EXCEPT:

Keeping questions reasonably short
Discouraging the interviewee from getting off subject
Maintaining control of the interview
Allowing the interviewee to ramble
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9-M/C #3.
A.
B.
C.
D.
Answer:

Answer:

9-M/C #4.
ask?
A.
B.
C.
D.
D

1.
2.
3.
4.

Suggested approaches for interviewing witnesses include all EXCEPT:

Approach the interview from an adversarial position
Start with background information
Determine whether the witness is in possession of any pertinent
documents
Document the witness connection to suspects, subjects, or targets of the
investigation.

Which of the following questions is NOT appropriate for an interviewer to

Is there anything that I have forgotten to ask?
Is there anything else you would like to add for the record?
Is there anyone else I should speak with about the issues we have covered?
Do you think embezzling is a crime?

9-M/C #5. Provide a chronological sequence for the introductory phase in

interviewing a fraud suspect using the following stages.
Establish the interview theme
Observe reactions
Establish rapport
Provide the introduction

Answer:

Answer:

A.
B.
C.
D.
A

4, 3, 1, 2
4, 2, 3, 1
1, 2, 3, 4
2, 3, 4, 1

9-M/C #6. General rules for conducting an introductory interview for potential
suspect(s) include all EXCEPT:
A.
Conduct the interview under conditions of privacy
B.
Do not interview more than two people at a time
C.
Ask non-sensitive questions
D.
Get a commitment for assistance
B
9-M/C #7. General rules for conduction an introductory interview for potential
suspect(s) include all EXCEPT:
A.
Discussing the source of the allegations
B.
Seeking continuous agreement
C.
Ask non-sensitive questions
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Answer:

D.
A

Conduct the interview under conditions of privacy

Answer:

9-M/C #8. ________ questions are those worded in a way that makes it difficult to
answer yes or no.
A.
Accusatory
B.
Closed
C.
Open
D.
Affirmative
C

Answer:

9-M/C #9.
A.
B.
C.
D.
D

Answer:

9-M/C #10.
________ questions are those that limit the possible responses by
requiring a precise answer usually yes or no.
A.
Open
B.
Closed
C.
Affirmative
D.
Leading
B

Answer:

9-M/C #11.
Which step does NOT improve the quality of the interview during
the information-gathering phase?
A. Ask multiple questions at a time
B. Begin by asking questions that are not likely to cause the respondent to
become defensive or hostile
C. Give the person an opportunity to qualify his or her answers
D. Ask straightforward and frank questions
A

Answer:

9-M/C #12.
Which step does NOT improve the quality of the interview during
the information-gathering phase?
A.
Repeat or rephrase questions, if necessary, to get at the faces
B.
Give the person an opportunity to qualify his or her answers
C.
Try to help the respondent remember, and suggest answers
D.
Separate facts from inferences
C

________ questions contain the answer as a part of the question.

Open
Closed
Affirmative
Leading

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Answer:

9-M/C #13.
In order to begin in information phase of the interview, you must
first make a transition out of the introductory phase. Which method is NOT
commonly used during this phase?
A.
Begin with background questions
B.
Observe verbal and nonverbal behavior
C.
Ask leading (closed) questions
D.
Approach sensitive questions carefully
C

Answer:

9-M/C #14.
You will encounter some people who choose to be difficulty during
an interview. Which step should NOT be taken in that situation?
A.
Try to reason with an unreceptive person
B.
In some situations, change tactics to reduce hostility
C.
There should be two interviewers involved in potentially volatile
situations
D.
You should not react to anger with hostility
A

Answer:

9-M/C #15.
Which of the following is NOT a typical closing question in an
interview?
A.
You knew Ms. Jones had some financial problems, is that right?
B.
If you were trying to resolve this issue, what would you do?
C.
Ms. Collins, this is just a standard question. Do you feel that I have
treated you fairly in this interview?
D.
What is your position in the company?
D

Answer:

9-M/C #16.
________ or ________ is the process of observing behavior before
critical questions are asked, as opposed to doing so during questioning.
A.
Gauging, detecting
B.
Norming, calibrating
C.
Surveying, discovering
D.
Spying, viewing
B

Answer:

9-M/C #17.
Admission seeking questions are posed in a precise order designed
to:
A.
Clear an innocent person
B.
Encourage the culpable person to confess
C.
Both A and B
D.
None of the above
C

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Answer:

9-M/C #18.
As a general rule, private employers conducting an internal
investigation are not required to give:
A. Miranda warnings
B. Evidence to defense counsel
C. Equal opportunity to all classes of employees
D. Pay for all hours worked
A

Answer:

9-M/C #19.
Which of the following is NOT a step in the admission-seeking
interview (interrogation)?
A.
Accuse the subject of committing the offense
B.
Observe-reaction
C.
Assure confidentiality to the suspect
D.
Interrupt denials
C

Answer:

9-M/C #20.
Which of the following is NOT a step in the admission-seeking
interview (interrogation)?
A.
Establish rationalization
B.
Defuse alibis
C.
Obtain the benchmark admission
D.
Offer clemency
D

Answer:

Answer:

9-M/C #21.
When pushed into a corner, a subject or witness will often react to
the stress created by deception. Some signs of stress that may accompany
deception include all EXCEPT:
A.
Evasive answers to questions
B.
An unwillingness to suspect anyone of committing the act under
examination
C.
Maintaining eye contact with the interviewer
D.
Hostility toward the interviewer
C
9-M/C #22.
Verbal cues to deception include all EXCEPT:
A.
Changes to Speech Patterns
B.
Immediate answer to interviewers questions
C.
Making excuses
D.
Answering with a question
B
9-M/C #23.
Non-verbal cues for deception include all EXCEPT:
A. Calmness
B. Hands over the mouth
C. Crossing the arms
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Answer:

D. Fleeing positions
A

Short Answer Essay

Answer:

9-SAE #1. What are some of the reasons that persons often fail to identify lies?
A tendency to believe people. Fraud professionals and forensic accountants tend
to be honest, and they may inflict their value system on others who are more
comfortable lying.
Behaviors are incorrectly judged: deceitful behaviors are labeled as truthful, while
truthful behaviors are labeled as deceitful.
Failure to recognize reliable cues to deception.
Truthful behavior is relatively easy to imitate if you have knowledge of
behavioral cues.
Deceitful behavior is actually the response to stress, not deceit. Thus, simply
because the interviewee exhibits symptoms of stress does not mean that they will
follow the stress-inducing stimulus with a lie

Answer:

9-SAE #2. Provide three of Joe Wells ten commandments for effective interviewing.
1.
Preparation is the key to success.
2.
Think as you go.
3.
Watch nonverbal behavior,
4.
Set the tone for the interview.
5.
Set the pace for the interview.
6.
Keep quiet.
7.
Be straightforward.
8.
Patience.
9.
Circle back.
10. Get it in writing.

Critical Thinking Exercise

A murderer is condemned to death. He has to choose between three rooms. The first is full of
raging fires, the second is full of assassins with loaded guns, and the third is full of lions that
havent eaten in three years. Which room is safest for him?
Answer:

The third lions that havent eaten in three years are dead.

Text Review Questions

9-TRQ #1. What are the benefits of strong interviewing and interrogation skills?
Answer:
There are several benefits of effective interviewing and interrogation skills,
including:
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1.
2.
3.
4.

Reduced investigation time

Increased probability of investigative success
Improved confidence in investigative conclusions
Direct evidence of culpability versus indirect evidence from examination of
books, records, and other evidentiary forms
5. The elimination of innocent subjects or targets

Answer:

Answer:

9-TRQ #2. Why are interviews in fraudulent financial statements and tax returns
handled differently than interviews in other fraud examinations?
With fraudulent representations such as materially misstated financial statements
and improper tax returns, the investigator starts with the suspected perpetrator. In
other fraud investigations, the perpetrator may be unknown.
9-TRQ #3. What are some suggested approaches for conducting interviews?
The following provides some guidelines for conducting the interview or
interrogation. First, the room should be set up so that the interviewer can see the
entire body of the interview subject. The interviewers chair should be located
about six feet in front of the interviewee. During the interview, the interviewer
should be respectful and professional at all times. He or she should avoid
technical terms and language that may confuse the interviewee, especially when
the person does not have a financial background and is not familiar with fraud
examination and forensic accounting terminology. The interviewer should avoid
taking detailed notes during the interview, instead just jotting down key words.
This may surprise some people, but a key to successful interviewing is listening
and watching for body language that suggests discomfort and possibly deceit by
the interviewee. Taking extensive notes distracts interviewers from their main
responsibility to watch and listen.

Answer:

9-TRQ #4. What are the five types of interview and interrogation questions?
Regardless of whom we interview, and about what, there are five general types of
questions we can ask: introductory, informational, assessment, closing, and
admission-seeking (interrogation).

Answer:

9-TRQ #5. Why are introductory questions so important to an interviews success?

Introductory questions serve four primary purposes: providing an introduction,
establishing a rapport between you and the subject, establishing the theme of the
interview, and observing the subjects reactions.

Answer:

9-TRQ #6. Why shouldnt an interviewer use closed or leading questions during the
information-gathering phase of the interview?
Closed questions are those that limit the possible responses by requiring a precise
answerusually yes or no. (Did you approve this vendor?) Closed
questions are also used to deal with specifics, such as amounts, dates, and times.
(On what day of the week did it happen?) Generally, closed questions should be

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avoided in the informational part of the interview. (They are used extensively in
the closing phase.)
Answer:

Answer:

Answer:

Answer:

9-TRQ #7. What is the primary purpose of admission-seeking questions?

Admission-seeking questions are reserved specifically for individuals whose
culpability is reasonably certain. It is at this point that a suspect becomes a
subject. These questions are posed in a precise order designed to (1) clear an
innocent person or (2) encourage the culpable person to confess.
9-TRQ #8. Why is it advisable to obtain a written confession from the subject of an
investigation?
There is no legal requirement that a statement must be in the handwriting or
wording of the subject. In fact, it is generally not a good idea to let a confessor
draft the statement. Instead, you should prepare the statement for the confessor to
sign. The confessor should read and sign the statement without undue delay.
Instead of asking the confessor to sign the statement, you should say, Please sign
here. Although there is no legal requirement, it is a good idea to have two people
witness the signing of a statement.
9-TRQ #9. What are some of the verbal clues to deception?
Changes in speech patterns.
Repetition of the question.
Comments regarding interview.
Selective memory.
Making excuses.
Oaths.
Character testimony.
Answering with a question.
Overuse of respect.
Increasingly weaker denials.
Failure to deny.
Avoidance of emotive words.
Refusal to implicate other suspects.
Tolerant attitudes.
Reluctance to terminate interview.
Feigned unconcern.
9-TRQ #10.
What are some nonverbal clues to deception?
Full-body motions.
Anatomical physical responses.
Illustrators.
Hands over the mouth.
Manipulators.
Fleeing positions.
Crossing the arms.
Reaction to evidence.
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Fake smiles.

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