Fraud Investigative Techniques


After completing this chapter, you should understand:

  • The definition of fraud.
  • Different types of fraud.
  • The components of the fraud triangle.
  • The utilization of ACL and i2 Analyst Notebook in fraud investigations.
  • An overview of a fraud examination and business investigation.
  • The use of computer technology in fraud examinations/investigations.

Perhaps a client requests your help to determine if evidence exists of vendor kickbacks to certain employees in the purchasing department. Possibly a company's legal counsel has hired you to determine whether an officer of the company has any hidden assets as a result of an embezzlement scheme he or she carried out. Maybe you need to conduct background checks (due diligence checks) on potential strategic partners of a proposed joint venture. Sound like interesting assignments? These are a few examples of value-added forensic accounting services offered by accounting firms to their clients. Other common fraud auditor/examiner engagements in relation to an audit client could include the following:

  • Providing assistance to the audit team in assessing the risk of fraud and other illegal acts.
  • Providing assistance to the audit team in investigating potential fraud or other illegal acts.
  • Conducting fact-finding forensic accounting studies of alleged fraud that could include bribery, wire fraud, securities fraud, money laundering, retailfraud, ortheft of intellectual property.

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