Opening The Fraud Examiner's Tool Kit

By Philip C. Levi, CMC, CFE, FCA, CPA, CA-IFA
Essentially three tools are available to the fraud examiner regardless of the nature of the fraud examination. First is interviewing - the process of obtaining relevant information about the matter from those who know about it. For instance, in a corporate situation, it might be necessary to interview a suspect's co-workers, superiors, and subordinates. 

Second, the fraud examiner must be skilled in the examination of financial statements, books and records, and supporting documents. The examiner must know the legal ramifications of evidence and ways to maintain the chain of custody over documents. For instance, the fraud examiner must lawfully obtain and analyze checks and other financial records to prove the case and then draw conclusions. 

Finally, fraud examiners are often placed in a position in which they must observe behavior, search for displays of wealth, and in some instances, observe specific offenses. For example, you might recommend a video surveillance of a company's cashiers department to witness a defalcation. You might establish visual surveillance in a public place to determine a subject's patterns or activities.

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