Principles of Fraud Examination, 4th Edition

CHAPTER 15

CONDUCTING INVESTIGATIONS AND WRITING REPORTS

LEARNING OBJECTIVES

After studying this chapter, you should be able to:

15-1	Understand the circumstances that may necessitate an internal investigation
15-2	Identify who should be part of a fraud examination team
15-3	Define evidence
15-4	Be familiar with several evidence-gathering techniques
15-5	Understand the considerations and concerns related to preserving documentary evidence
15-6	Understand the importance of and methods for organizing documentary evidence
15-7	Identify several sources of evidence and the types of information each can provide
15-8	Be familiar with the standard format and requirements for a professional investigation report

WHEN IS AN INVESTIGATION NECESSARY?

The need for an internal investigation can arise in a number of circumstances. Obviously, such an examination may be necessary to determine the source of losses caused by occupational fraud. A thorough investigation in these circumstances can help a company reduce its losses, identify the perpetrator, gather evidence for a criminal prosecution or civil trial, and recapture some or all of the amount stolen. It can also shed light on weaknesses in the company's control structure, thereby helping to shore up the company's internal defenses against future employee misconduct.

In addition to preventing losses resulting from fraud, an organization or its officers may have legal duties to investigate alleged misconduct. Certain federal ...