Paper 6

PLANNING AND CONDUCTING FORMAL INVESTIGATION

This paper is intended to equip the candidate with knowledge, skills and attitudes that will enable him/her to effectively plan for and conduct fraud investigations and to prepare comprehensive reports.

On completion, a candidate should be able to

Develop a fraud/corruption theory
Identify off and on book fraud
Apply the various methods and techniques of conducting fraud investigations
Write standard investigations and expert witness reports
Assist management/board in fraud/corruption prevention and detection

Content

1
Introduction to Planning and Conducting Investigations
1. 1.1
  Objectives of fraud/corruption investigations
2. 1.2
  Functions of a fraud investigation
3. 1.3
  Fraud investigations, forensic accounting and forensic audit
4. 1.4
  Fraud investigation methodology
5. 1.5
  Developing a fraud response plan
2
Methods and Techniques of Conducting Investigations
1. 2.1
  Analysing documents and collecting evidence
2. 2.2
  Interviewing theory and application
3. 2.3
  Interviewing suspects and written confession statements
4. 2.4
  Undercover operations
5. 2.5
  Identifying sources of information
6. 2.6
  Data analysis and forensic reporting tools
3
Digital Forensic Investigations
1. 3.1
  Conducting investigations involving computers
2. 3.2
  Digital investigations versus digital forensics
3. 3.3
  Digital forensic experts
4. 3.4
  Digital investigations and law enforcement
5. 3.5
  Digital evidence
6. 3.6
  Digital investigation in cloud environment
7. 3.7
  Phases of digital forensics and investigations
4
Tracing Illicit Assets
1. 4.1
  General process for tracing illicit assets
2. 4.2
  Methods of obtaining information for locating assets
3. 4.3
  Direct method of tracing illicit financial transactions
4. 4.4
  Indirect methods of tracing illicit financial transactions
5. 4.5
  Locating hidden assets
6. 4.6
  Locating assets hidden in foreign jurisdictions
5
Standard Investigation Report Writing
1. 5.1
  Fraud investigation report
2. 5.2
  Expert witness report
3. 5.3
  Preparation for report writing
4. 5.4
  Characteristics of a good report
5. 5.5
  Common reporting mistakes
6. 5.6
  Organisation of information
7. 5.7
  Readers and users of fraud investigation reports
8. 5.8
  Outlining the fraud investigation report
9. 5.9
  Grammatical considerations
10. 5.10
  Fraud investigations report structure
11. 5.11
  Experts report structure
12. 5.12
  Reporting documents
13. 5.13
  Fraud investigation checklist
14. 5.14
  Fraud investigation engagement letters
15. 5.15
  Fraud investigation advisory letters
6
Case Study (Based on competencies acquired in Papers 3,4,5 and 6) Based on the case study • Determine if there is predication to conduct an investigation by explaining why you believe there is predication or not • Based on the allegation develop a fraud theory for the case study • Identify if the fraud is on-book or off-book • Identify the principal category of fraud in this case study and the laws violated by the fraudulent and corrupt activities • Plan the investigation • Identify the justice systems that can be used in the fraud/corruption case • Explain the trial processes, that is, criminal and civil justice systems in both common law and civil Law for the case study • Explain the methods and techniques that will be applied to investigate the case study • Identify the facts/evidence that can be used in a court of law to prove fraud/corruption in this case study • Prepare a forensic investigation/audit report that can be used in a court of law • Prepare an expert witness report