The Board of Director's Audit Committee in ABC, Inc., manufacturing business in Atlanta believed there could be a basis for the complaint made on the company's anonymous complaint line. Outside counsel was hired to investigate the complaint. Accordingly, outside counsel hired a CPA, specializing in forensic accounting matters to assist the investigation.
After questioning the Audit Committee member, the specialist learned that Mr. Jay Rich, a senior manager in the operations department, may be authorizing payments to phantom contractors.
The specialist conducted an interview with the head of human resources, Pat Young to gain all available information about Mr. Jay Rich. In overall, the specialist did not structure a good interview, so Pat did not cooperate. Several points were noticed in this interview that needs to be improved if the interviewer wants to have better result or gain more information in the next interviews.
An interview is a conversation that is not accusatory but supportive, little structured, dialog-based, question and answer, intended to gain information for a specific purpose.
However, conversation with Pat Young was mostly like interrogation than interview. Interviewer overlooked that the primary purpose of her interview which was collecting evidence through facts and other information that supplied by Pat. The interviewer formed an atmosphere that made Pat so tense and defendant instead of making a supportive tone. Besides, the interviewer's question had a slander issue that kept Pat away from cooperation with interviewer. Interviewer should be very careful about not making any accusatory questions during an interview.
Fraud triangle composed of Opportunity, pressure and rationalization which all need to be present for someone to commit fraud. Consequently, as planning for an interview, all three elements of the fraud triangle should be considered and have in minded that case ultimately will end up in a civil...