Forensic Investigation Interviewing

Week 12

For the following entry please refer to the below passage:

In 1990, a keynote speaker at a conference provided his views on interviewing techniques:

“When interviewing people whilst investigating a fraud case, one needs to be very open and provide as much detail as possible to help the interviewee understand the case. One should not have pre-determined questions, but should allow the interview to follow a natural path. One should also avoid recording the interview as it may make the interviewee feel uncomfortable”.

“Do you agree or disagree with the points made by the keynote speaker? Using, lectures and readings, plus your own knowledge and experiences, provide arguments and recommendations to your organisation on the correct procedures for preparing fraud-related interviews with employees, witnesses and possible suspects. Use your reflective writing techniques in answering this question.”

Reflecting on my experiences in job interviews and research, I disagree with the speaker’s comments as preparing questions and recording the interview are two important aspects of conducting a fraud investigation interview. Golden, Skalak, Clayton and Pill (2011, p.317) stated that preparing lines of questions to ask during the interview is an effective tool for interviewing. Additionally recording the interview provides a powerful instrument in legal proceedings, however the interviewer must be aware of the law in regards to recordings (Golden, et al, 2011, p.319-320).

Porter and Crumbley (2012) have highlighted the REID model and the PEACE model as the two leading interviewing techniques used for fraud investigations. However, the accusatory method adopted by the REID model sometimes leads to false confessions. For example, when I was little I was accused of breaking a vase and admitted even though I was innocent. On the other hand, the cynical attitude adopted by the PEACE model eliminates the issue of false confessions and provides a more efficient way of reaching the objective of the interview (Shawyer and Walsh, 2007).

Additionally I believe the key tool to an effective interview is to make the interviewee feel comfortable. Hopwood, Leiner and Young (2008, p.238) have suggested becoming familiar with the interviewee by building a rapport with them. Additionally Golden et al (2011, p.326) suggests being friendly, sympathetic and professional during the interview. Having been to many interviews, I know that nerves can twist information however, when the interviewer acted really friendly, I was able to relax and fully participate in the interview. Therefore when conducting fraud-related interviews the PEACE model should be used in conjunction with my above recommendations.

Reference List:

Golden, T., Skalak, S., Clayton, M., & Pill, J. (2011). A guide to forensic accounting investigation, (2^nd Ed). Hoboken, New Jersey: John Wiley & Sons

Hopwood, W., Leiner, J, & Young, G. (2008). Forensic accounting. New York, NY: McGraw-Hill Irwin

Porter, S., & Crumbley, L. (2012). Teaching interviewing techniques to forensic accountants is critical. Journal of Forensic & Investigative Accounting, 4(1), 122-146. Retrieved from: http://www.bus.lsu.edu/accounting/faculty/lcrumbley/jfia/Articles/FullText/2012_v4n1a5.pdf

Shawyer, A., & Walsh, D. (2007). Fraud and peace: investigative interviewing and fraud investigation. Crime Prevention and Community Safety, 9(2), 102-117. doi: 10.1057/palgrave.cpcs.8150035.

Fraud Prevention

Week 11

For the following entry please consider the facts of the case below:

A speaker at a business advisory conference focusing on fraud prevention identified the characteristics you may find within a firm that may lead to fraudulent activities occurring. They are:

• Fraud is not perceived as a risk, or risks are not assessed
• Management ignores irregularities
• Morale is low
• High turnover within the firm
• Staff lacks training in the systems in which they operate on a day to day basis
• A rapid increase in revenues and profits
• A very strong, egotistical leader
• Profit is the ultimate goal.  It is to be reached no matter what occurs to deter the organization or employee.
• Salary structure is tied to profits

He then said: “These are just a few of the characteristics you might find prevalent within a corporation ripe for fraud. Although in Australia there have been multitudes of frauds committed during the past ten to 15 years, by men such as Alan Bond, Joel Barlow, Rene Rivkin and Christopher Skase, fraud is still increasing in Australia.  It seems that these frauds have not increased awareness within most businesses.  Awareness and education is the key to defeating fraud within today’s organisations”

“Do you agree or disagree with the final statement made in the case on awareness and education? Using documents, lectures, readings and other journal articles, plus your own knowledge and experiences, provide arguments and recommendations to your organisation on how they can prevent the incidence of fraud. Use your reflective writing techniques in answering this question.”

Based on my knowledge of large fraud cases such as ING and Queensland Health, I believe that awareness and education must be used in conjunction with other fraud preventative measures to defeat fraud within today’s organisations. According to Smith (1998) fraud prevention and control strategies range from general policies to highly specific, individually tailored procedures.

Preventative policies have been developed by the Government, industry and academics to manage fraud for organisations. For example, the Government has published the AS 8001-2008 guideline which is available for businesses to prevent fraud and corruption. Grain Corp (2008) has effectively incorporated the guidelines of AS 8001-2008 as part of their policy to mitigate fraud risk.

Additionally models of fraud detection have been developed such as the Analysis Led Fraud Assessment (ALFA) model (Steane and Cockerell, 2005). The ALFA approach identifies areas of high fraud risks and critical fraud risks to enable organisations to address the risk of fraud. Furthermore Steane and Cockerell (2005) have defined critical risks to be area of high fraud risks where there are poor or no risk controls in place. To simply illustrate the ALFA approach, I have reflected on my experience Zorbing which presented a critical risk, but through safety measures in place, it was reduced to a high risk activity.

Moreover I have highlighted below some of my key recommendations based on the fraud I have witnessed at a small business:

• Developing an ethical culture
• Employment screening process
• Whistle blowing schemes
• Red Flags and fraudster profiling
• Strong internal controls

Therefore I believe that the above methods should be implemented, in conjunction with education and awareness training, to mitigate the occurrence of fraud.

Reference List:

Australian Standards 8001-2008. (2008).Fraud and corruption control. Retrieved from: http://fraud.govspace.gov.au/files/2010/12/Australian-Standard-8001-2008.pdf

Grain Corp (2008). Fraud & corruption control: corporate governance procedure. Retrieved from: QUT Blackboard.

Smith, R. (1998). Best practice in fraud prevention. Retrieved from: http://www.aic.gov.au/documents/F/3/2/%7BF3256DEB-9A04-4416-9D11-156922F22EC8%7Dti100.pdf

Steane, P., & Cockerell, R. (2005). Developing a fraud profile method – a step in building institutional governance. Retrieved from: http://soc.kuleuven.be/io/ethics/paper/Paper%20WS3_pdf/Peter%20Steane.pdf

The Forensic Accountant as an Expert Witness

Week 10

For the following entry please apply the following hypothetical scenario:

Assume you have completed your university degree and landed your ‘dream job’ working as a junior forensic accountant in a boutique forensic accounting firm in the Brisbane CBD. After 12 months, you are asked to represent a client in Court as the expert witness. The person who usually undertakes this work is overseas investigating a case and will not return for another four weeks.

The client is a well-known CEO from a large and profitable organisation, charged with misappropriation of funds. If found guilty, he will be jailed for approximately five years. You have been working on the case as a forensic accountant, compiling large amounts of evidence and eDiscovery documents for the past five weeks. Although you have learnt a great deal in the 12 months with the firm, and from your studies at QUT (especially AYB115!), you feel that you are not yet qualified to take on this role.

“Using relevant parts of APES 215 and other documents/journal articles and your own knowledge, explain to your supervisor why it is inappropriate for you to be the expert witness in this case. Use your reflective writing techniques in answering this question.”

Since discussing expert witnessing, I have been examining what it would take for me to become an expert witness. I feel that I am not suitable for the roles because I lack the appropriate experience and my personality does not correlate to that of an expert.

The APESB (2008) publication for forensic accountants, APES 215, item 3.12 highlights that expert witnesses require specialised training, study or work experience. Furthermore Rasmussen and Leauanae (2004) highlights that years of prior experience in forensic cases, training and education are the most important characteristic of an expert. Upon evaluation, I believe that it is inappropriate for me to be an expert witness as I possess a low level of experience, having only worked in the field for 12 months. A suitable expert would be someone like guest speaker Lisa who was a qualified accountant and had 5 years of work experience when starting as an expert witness.

Additionally I believe that I would not make a good expert witness based on my personality. Hoffman, Finney, Cox and Cooper (2007, p.15) have highlighted that being an expert requires a specific attitude and approach. Based on previous personality testing, I have discovered that I am an introverted person, scoring 31 points for extroversion in the Neo IPIP test. Additionally Singleton, Singleton, Bologna, and Lindquist (2006, p.277) have highlighted that opposing counsel will attempt to discredit and destroy the expert’s self-confidence in the cross-examination process. Based on my research and discussions with an expert witness, I conclude that I would not be suited to being an expert witness as I believe that I could not keep my composure in the witness stand.

Reference List:

Accounting Professional and Ethical Standards Board (APESB). (2008). APES 215 Forensic Accounting Services, item 3.12 – Professional competence and due care. Retrieved from: http://www.publicaccountants.org.au/media/32890/apes%20215%20standard_1.pdf

Hoffman, R., Finney, W., Cox, P., & Cooper, K. (2007). The forensic accountant as an expert witness: a basic guide for forensic accounting. Sydney, NSW: CCH Australia Limited.

Rasmussen, D., & Leauanae, J. (2004). Expert witness qualifications and selection. Journal of Financial Crime, 12 (2), 165-171. Doi: 10.1108/13590790510624954

Singleton, T., Singleton, A., Bologna, J., & Lindquist, R. (2006). Fraud Auditing and forensic accounting (3^rd Ed). Hoboken, New Jersey: John Wiley & Sons

Internet Content Regulation and Businesses

Week 9 

"Do you think Australian Internet Service Providers (ISP) should be forced to filter Internet content?”

As an internet user, I believe that the issue of online regulation and filtering is two-fold as ISPs should be able to filter inappropriate content, but only when it is necessary to do so. I have created an online presence through this blog and therefore I must be aware of the content I include as I may be subject to any proposed filtering policy.

In the past weeks I have been researching the proposed plan by the Government to filter Internet content through an ISP-level filtering policy. According to Senator Conroy (2009) Internet filtering would reduce the risk of children being exposed to inappropriate material when online. However arguments by Electronic Frontiers Australia (2011) and ISPs have highlighted issues about the filtering system stating that it would not work. Additionally I have discovered that certain ISPs like Telstra and Optus have already begun to voluntarily filter child abuse material, ahead of the government proposed filtering policy (DBCDE, 2011). During my research I reflected on the heavily filtered internet access I experienced while at high school and my frustrations with the filtering. I suspect the proposed plan might incur more annoyance due to slower internet speeds some experienced during the pilot study.

Additionally a US study found that 78% of consumers look up information about businesses online before interacting with them (Intelius, 2010). Therefore, for businesses to be successful operating a website and their online presence is one of their most valuable assets and source of sales. It is for such reasons that businesses need to be aware of the content they post and the potential filtering policy to ensure that they can continue to operate.

Reference List:

Department of Broadband Communications and the Digital Economy (DBCDE) (2011). Internet service provider (ISP) filtering. Retrieved from: http://www.dbcde.gov.au/funding_and_programs/cybersafety_plan/internet_service_provider_isp_filtering

Electronic Frontiers Australia. (2011).Mandatory ISP filtering. Retrieved from: https://www.efa.org.au/category/censorship/mandatory-isp-filtering/ 

Intelius. (2010). Importance of having an online presence. Retrieved from: http://www.themarketingbit.com/small-business/importance-of-having-an-online-presence/

Senator Conroy, S. (2009, December 15). Measures to improve safety of the internet for families. Retrieved from: http://www.minister.dbcde.gov.au/media/media_releases/2009/115

IP Protection for Businesses

Week 7

“What are some of the measures which business can take to protect its Intellectual Property (IP)? Why is it important for a business to understand ownership of IP rights?”

It is important to understand IP rights for businesses which use, own or have acquired IP to ensure against infringement. I personally have created IP and use others’ IP, similar to how many businesses do. In light of the Copyright Act 1968 and the Trade Mark Act 1995, I have been examining ways businesses can protect their IP.

The Institute of Chartered Accountants Australia (2011) highlighted that awareness of IP ownership is very important for businesses. More information on ownership under the Copyright Act 1968 and the Trade Mark Act 1995 can be found here. Though my employment as a Student Ambassador for QUT I have created IP. However, the subsisting ownership in my literary creation belongs to QUT, under Section 35(6) of the Copyright Act 1968. In regards to trade marks the owner is the person who has registered the trade mark. For businesses which have created IP, awareness of ownership is important as such IP can become very valuable assets.

Additionally, a US study has revealed that businesses consider trade marks and copyright to be some of the greatest IP assets to them and that protection is a recurrent concern. (New pilot survey reveals importance of intellectual property, 2012). In Australia most businesses use or create copyright though their advertising or have registered their name as a trade mark. For such businesses to exploit their IP for competitive advantage and marketing it is essential to secure IP against infringement (Business Link, n.d.). One example is Microsoft Office which I, along with businesses, use day-to-day through a licensing agreement and such a licence protect both me as the customer and Microsoft, the owner.

Reference List:

Business Link, (n.d.). Protecting intellectual property. Retrieved from: http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1074300698&type=RESOURCES

Copyright Act 1968. Retrieved from: http://www.comlaw.gov.au/Details/C2012C00265

Institute of Chartered Accountants Australia. (2011). Business briefing series: 20 issues on intellectual property. Retrieved from: http://www.charteredaccountants.com.au/Industry-Topics/Business-management/Recent-headlines/News-and-updates/Intellectual-property-offers-great-opportunities-for-businesses.aspx

New pilot survey reveals importance of intellectual property. (2012, February 27). R&D Daily. Retrieved from: http://www.rdmag.com/News/2012/02/Policy-Industry-Patents-New-pilot-survey-reveals-importance-of-intellectual-property/

Trade Mark Act 1995. Retrieved from: http://www.comlaw.gov.au/Details/C2012C00161