FR-108 INVESTIGATING INTERNAL FRAUD AND CONDUCTING INTERVIEWS

FR-108 INVESTIGATING INTERNAL FRAUD AND CONDUCTING INTERVIEWS

DESCRIPTION

Fraud detection and prevention methodologies are no longer a specialty skill set but have become a requirement for most auditors and compliance professionals. Today, auditors and compliance professionals are becoming more involved not only in preventing and detecting fraud, but also in full-scale fraud investigations. Historically, these are not skills that auditors and compliance professionals have learned or have been trained to do. This course will to walk the participants through the steps of a formal fraud investigation, including the most frequently used interviewing and interrogation methodologies.

 

This interactive course will be taught through a combination of lecture, group exercises. and class participation.

LEARNING OBJECTIVES:

  • Overview of fraud fundamentals and basics
  • Fraud Risk Assessment basics
  • Identifying fraud in an organization
  • Learning how to effectively conduct investigations
  • Understanding the fundamentals of interviewing and interrogating
  • Learning how to protect information for legal action
  • Learning how to prepare fraud examination reports

 

COURSE OUTLINE

Fraud Basics Overview

  • The Fraud Triangle
  • Association of Certified Fraud Examiners (ACFE) 2018 Report to the Nations
  • Fraudsters—characteristics and behaviors

Fraud Risk Assessment Basics

  • Conducting Fraud Risk Assessments
  • Fraud risk as part of an overall Enterprise Risk Management (ERM) Program
  • Potential obstacles and pitfalls for Fraud Risk Assessments
  • Best practices in Fraud Risk Assessment
  • Internal Audit’s role

The Fraud Tree: Schemes and Scenarios Overview

  • Corruption
  • Financial statements
  • Asset misappropriation—cash | fraudulent disbursements
  • Asset misappropriation—inventory and other assets

Identifying Fraud

  • Red flags common to various fraud schemes
  • Identifying red flags during the audits and reviews
  • Analyzing red flags for actual fraud
  • Fraud auditing vs. controls auditing

Investigations

  • Planning and conducting an investigation
  • Obtaining and analyzing information
  • Covert investigations
  • Forensics
  • Useful resources for investigations

Interviewing

  • Differences between an interview and an interrogation
  • Interview styles and techniques
  • Understanding pressure, motive, and opportunity
  • Preparing for the interview
  • Interviewing—witnesses vs. potential suspects

Interrogating

  • Interrogation techniques – Reid/Wicklander/ACFE methodologies
  • Formulating the interrogation questions
  • Suspect behavior analysis
  • Theme development
  • Handling denials, objections, and passiveness
  • Handling confessions – Converting oral to written

Using Data Analytics for Investigations and Fraud Auditing

  • Scoping the use of data analytics
  • Identifying the data to be mined
  • Identifying investigation objectives
  • Acquiring the data | Vetting the data

Reports and Reporting

  • Types of reports | Report structure and format
  • Characteristics of a good report | Common mistakes
  • Trial-ready reports | Legal considerations
  • Visual aides
Duration

CPE

Delivery

Field

Level

Who Should Attend

Prerequisites

Advanced Preparation

2 Days

16

Group-Live

Auditing

Intermediate

Internal audit and accounting staff and management

Auditors with at least 2 years of experience

None