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Anatomy of An Internal Fraud Investigation (Tips, Successes and Failures) Eldoret

The document provides an overview of conducting internal fraud investigations, including tips for successes and failures. It discusses carrying out high risk investigations, conducting interviews using emotional intelligence, gathering evidence while managing investigation risks, and providing litigation and court support. Key aspects of interviews addressed include different personalities, question types, inhibitors, and ways suspects may evade questions. The document also covers forming a hypothesis, communicating with stakeholders, analyzing evidence, and ensuring evidence admissibility in court.

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86 views32 pages

Anatomy of An Internal Fraud Investigation (Tips, Successes and Failures) Eldoret

The document provides an overview of conducting internal fraud investigations, including tips for successes and failures. It discusses carrying out high risk investigations, conducting interviews using emotional intelligence, gathering evidence while managing investigation risks, and providing litigation and court support. Key aspects of interviews addressed include different personalities, question types, inhibitors, and ways suspects may evade questions. The document also covers forming a hypothesis, communicating with stakeholders, analyzing evidence, and ensuring evidence admissibility in court.

Uploaded by

syed younas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Anatomy of an Internal Fraud

Investigation
(Tips , Successes and Failures)

ELDORET
NASUMBA KIZITO KWATUKHA -

CPA,CIA,CISA,CFE,CISM,CISSP,CISI,CRM
A,IIK

Executive Director - IARC


Strathmore University
Presentation agenda
Introduction

Carrying out an Investigation – Emphasis on High Risk


Assignment

Conducting Interview- Emotional intelligent

Issues around gathering of evidence and Investigation


risks

Litigation and court support- All fraud cases end in


court
Books to Read
• 7 Habits of Effective People
• Yellow Weil
• The Prince
• 48 Laws of Power
• How to win friends and influence People
• Emotional Intelligence
• Why you behave the Way you do

4
Introduction

“You can be forgiven for killing but


generally human beings will not forgive you
for stealing their property”

Nicollo Machievelli (18 Century)

Yellow Weil – Life and tells of a con man


Fraud Diamond Kenyan Context
Fraud Diamond Kenyan
Context
Study in Italy by Lombroso emphasized on Physical attributes
Still applicable today especially by the Millennial-80% want to
study procurement.

7
Fraud Context

8
Fraud Context
Investigation Lifecycle

HYPOTHESIS Scenario /
Scheme, Investigation
Request

COMMUNICATE EVIDENCE
Investigation Team, Identification,
Management Report, Collection, Validation
Lawyers, Police / Court

ANALYSIS
Compare
Evidence vs.
Hypothesis –Do
facts lead to a
conclusion?

10
11
Types of High Risk Assignment
Application depends on:

Witness and subject matter expert

Form of evidence

Role and Litigation

Nature of assignment 12
Methods of Investigation
Assignments can be either:
Covert

Overt

How you frame your Terms of reference

Use decoy and multiplicity of approach- King


Solomon
Conducting Interviews- Personalities

14
Conducting Interviews
Self Awareness

Social Awareness

Relationship Awareness

Social Relationship
Concept by: Daniel Goleman
15
Conducting Interviews
Emotional Intelligence: There are four
Personalities:
Red(Chlo)

Green(Mels)

Yellow( San)

Blue (Phlegs) 16
Interviewing Questions
• Introductory and Information Questions

• Assessment Questions

• Admission Seeking Questions

17
Interviews- What to consider
• Expression

• Ritual

• Therapy

• Persuasion

18
Inhibitors of Interviews
• Time
• Ego threat
• Disapproval
• Loss of status
• Regression
• Altruism
• Avoid titles
• Sympathy
19
How to evade
How to Evade
• Forgetfulness
• Trauma
• Confusion
• Be Hostile
• Limited and Selective Knowledge
• Busy / No time

20
Litigation and Court support

21
Dealing with Hostile Witness

22
Questions and What to avoid
• Closed Questions
• Leverage on Continuous Discussion
• Use hypothetical Questioning
• Body emotions
• Correct and good
• Reluctance to end an interview
• Overly good titles
• Emotions and Opinions
23
Factors to be careful of
• Legal Requirements
• Deal with deception
• False imprisonment
• Recording
• Dealing with resistance
• Dealing with your Own emotions

24
Words to Avoid
• Investigate
• Audit
• Embezzlement
• Are you sure?
• Why did you do it

25
Conducting Interviews
Be good at understanding human
behaviour :
 Kinetics;

 Proxemics;

 Chromatics;

 Use of therapy and cathesis is important


Conducting Interviews
 Increase altruism effects and reason out

Check out on the space and meeting area

Changes in behaviour- sweating; crying;

Selective amnesia

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Form of Evidence

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Form of Evidence
Manual or Digital – all are MFIs

Manual is easily observed; examined;


found; traced

Digital : Needs imaging; tracing source


and analytical tools
29
Admissibility Test
 Admissibility of the Subject matter Expert

 Admissibility of your Evidence

 Spring Board and Cross Examination

 Security and Creation of decoys

 Use of encryption

30
Q and A
• Nasumba Kizito Kwatukha-

• CPA,CIA,CISA,CISM,CISSP,CISI,CRMA,IIK

• Executive Director – IARC

• Strathmore University

32

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