CHAPTER 8: INTERVIEWING SKILLS

ICAI Forensic Accounting | SET C | Comprehensive Exam Notes

LEARNING OUTCOMES
After studying this chapter, you should be able to understand:
• Necessity and objectives for conducting Interview in Forensic Accounting Investigation (FAI)
• Good practices to be considered by an interviewer
• Interview process in Forensic Accounting Investigation
• Multiple factors in planning and preparation for an interview
• Important points to be considered while conducting an interview
• Different phases of an interview
• Open-ended questions and their usage
• How to conclude/close an interview
• Importance of Non-verbal Cues

INTRODUCTION
FAIS 340 defines 'Interview' as: A structured meeting with individuals for eliciting
information.
Interviews serve as a way of gathering evidence and information. They act as effective means to
corroborate understanding of documentary evidences. Written interview statements are used to record
the information gathered, making it an integral element of work procedures.
Key characteristics of interviews:
• Inter-personal interactions with multiple facets
• Generally well planned and conducted
• Conducted within the framework of existing laws, rules, norms and procedures
• Professionals primarily depend on documentary evidence, but need oral/written statements to
corroborate it
• This makes interviewing a NECESSARY PART of the overall FAI process

8.1 ART AND SCIENCE OF INTERVIEWS – NATURE & TYPE

Conducting interviews assists professionals to communicate or engage with individuals to elicit any
information directly or indirectly pertaining to an assignment.

OBJECTIVES OF CONDUCTING INTERVIEWS

Overall Objective:
To seek information for corroborating evidences and to record statements of admission by
concerned individuals.
Supplementary Objectives:
1. To emphasise the importance of effective planning and preparation, prior to conducting
interviews
2. To undertake a methodical approach and include certain necessary steps in conducting
interviews
3. To ensure that statements obtained can be presented as suitable evidence in a Court of law

Science vs. Art of Interviewing:

SCIENCE ART
Effective planning Refined through practice
Preparation Developed through experience
Developing methodology Enriched by professional experience as accountant

Types of Interviewees:
• Whistle-blower
• Witness
• Information-provider
• Subject

IMPORTANT: Purpose of interview is:

• NOT to confirm what the interviewer thinks might have happened
• NOT to coerce the interviewee into providing information or confessing
• TO validate existing facts and seek additional information wherever possible

An interviewer's demeanour and experience have a vital role to play in the outcome of an interview. All
activities in FAI are centred around FINDING THE TRUTH.

GOOD PRACTICES FOR AN INTERVIEWER

Good Practice Rationale
Keep an open mind Do not assume guilt or innocence. Interviewer's role is to
gather facts impartially.
Stay in control Stay in control of both the interview and yourself. Do not
become irritated/angry by insolent or aggressive comments.
Patient, polite insistence normally overcomes difficulties.
Ask the right questions Through open-ended questions, encourage the interviewee to
in an open and give a full, uninterrupted account. Remain silent until a
cognitive way response is received.
Ask the right questions Order of questions is important; wrong order makes record
in the right sequence difficult to understand and could lead to claims of deliberate
confusion.
 Do not reveal the extent Telling the interviewee how much you know may give them an
of your knowledge opportunity to explain their actions and prepare defences.
Physical Scenario Interview should be held where interviewee feels comfortable
and secure, with minimum hindrance to freedom. Should be in
environment controllable by interviewer. Privacy is essential.
Maintain eye contact Creates comfortable environment and facilitates the flow of
information.
Emotions Interviewer should NOT convey emotions such as excitement
during interview or while taking notes.
Opinions Interviewer should AVOID making opinions or impressions
about the interviewee.
Questions Do NOT prepare a list of predetermined questions. Interview
flow should be free. However, a list of KEY POINTS or KEY
EVENTS to cover is acceptable. Do NOT share this list with
the interviewee beforehand.

NOTE: Interviews (including recorded statements) are written. They can also be audio/video
recorded WITH consent of interviewee.
8.2 THE INTERVIEW PROCESS
The interview process consists of three stages: Planning → Conducting → Closing

8.2.1 PLANNING AN INTERVIEW

Based on evidence gathered (factual or personal proof), an interview strategy must be drawn up and
the conversation must be structured. Strategy involves planning the order of topics or submitting
evidence.

Key Points to Consider While Planning:

• Be aware of interviewee classification: whistleblower, witness, information provider, or subject
• Understand the purpose of the interview and ensure it is ALIGNED with the aim of investigation
• Explore ALL hypotheses, including the possibility that the subject is INNOCENT
• Objective: to validate existing facts AND seek additional information
• Interviews also help in understanding prevailing systems and processes adopted by client
• An interview is NOT to confirm what interviewer thinks happened, NOR to coerce the
interviewee
• An interview is a SAFEGUARD against false confession and errors of justice
• Understand interview objective, hypothesis, and role of interviewee BEFORE developing an
interview plan
• An interview plan provides a framework for questioning, including sequence and outline for
questions
• Information obtained prior to interview may be collated and analysed — incomplete info may
lead to false/evasive responses
• Linking interview plan with specific hypotheses helps make it effective
• Prepare a set of POSSIBLE questions — these may undergo change based on answers
provided

Interview Participants Considerations:

• Interviews are normally conducted with an interview team — too many members should be
avoided (avoids interrogation impression)
• One-on-one interviews are generally DISCOURAGED
• The Lead Interviewer is responsible for the interview and provides direction
• Consider need for an interpreter — clear, unambiguous communication is a prerequisite;
interpreter must translate accurately and confidentially
• Consider having a senior representative of the primary stakeholder as an OBSERVER
• If the interviewee is a woman, another woman must be present (as senior rep or otherwise)
• Interviewee may choose a representative (usually nominated by them) to accompany
• Location: appropriate size meeting room, protect confidentiality and privacy — interview in
interviewee's office is DISCOURAGED

Formal Invitation:
• Send a formal written invite stating: time, place and purpose of interview
 • Select location conducive to conducting business, preferably during business hours
• For virtual interviews (Zoom/Teams): Lead Interviewer must ensure availability of appropriate
tools and connectivity

8.2.2 CONDUCTING AN INTERVIEW

Interviews are dynamic — there cannot be a standard process that fits all situations.
Evidence should be gathered WITHOUT any inducement, threat or promise to increase
credibility and admissibility.

Key Points When Conducting an Interview:

Element Key Details

Invitation for Interview Interviewee must receive: background/reasons for summons,
why they are asked for information, scope of investigation,
procedure of verification, how interview minutes will be used.
Interviewee has right to solicit advice.
Starting an Interview Begin with introduction by Lead Interviewer. Be courteous,
impartial, patient, polite but firm. Converse in language
interviewee understands. Explain purpose, lay ground rules,
explain rights. Ask if interviewee understands the procedure.
Obligation of Interviewee has responsibility to cooperate and clarify factual
Interviewee circumstances. Obliged to respond regarding work tasks and
employment issues. It is in their best interest to submit their
perspective.
Note Taking Decided at beginning of interview. As good practice, take
continuous notes. Notes must be: comprehensive, objective,
accurate and relevant. Notes used as work paper.
Consent Interviewer can seek informed consent to use and share
information provided during interview.
Audio/Video Can only be recorded with PRIOR CONSENT. Such consent
Recording may also be noted on the recording itself. Discrete (secret)
recording is INADMISSIBLE as evidence before competent
authorities.
Confidentiality Professional must maintain confidentiality of interview
information. Exercise due discretion when sharing evidence from
other interviews. Documents shared should be COPIES, not
originals. If covered by legal privilege, obtain advice from
attorney/counsel.

[Link] Recording the Statements — Phases of an Interview:

Phase Details
 (a) Introduction & Create empathetic and respectful relationship from outset.
Building Rapport Explain reasons, background, rights, formalities and procedures
(including audio/video recording info). Establish ground rules.
Ensure interviewee understands all requirements. Lays
foundation for shared understanding.
(b) First Free Account Seek a COMPLETE account — actively listen. Begin with broad,
open-ended questions, then proceed to more detailed questions.
Open-ended questions use: Who, Why, Where, What, When.
Examples: 'Can you tell me...', 'Describe for me...', 'What did you
do next?', 'What happened next?' — Do NOT interrupt during this
phase.
(c) Review and Repeat Review interviewee's answers with them to clarify responses.
Repeat a summarised version of the account and get
confirmation about factual accuracy. Allow interviewee
opportunity to add information before moving to next topic.
Example: 'Do you have any additional information with respect to
policy violations and/or concerns?'

8.2.3 CLOSING AN INTERVIEW

Steps to Follow While Closing:
• Provide opportunity to interviewee to document any additional information and concerns
relevant to investigation
• Provide a preferred mode of contact in case interviewee wishes to share additional information
later
• Give assurance regarding privacy concerns and confidentiality, especially to those who
requested anonymity (e.g., whistleblower, witness)
• Review all written statements — invite interviewee to sign at bottom of each page and initial any
corrected mistakes. All others present may also sign each page
• For virtual interviews: obtain a signed copy of statements at the earliest possible
• Signed minutes and statements can be used as evidence. Notes need not be verbatim or Q&A
format, but must capture relevant information precisely and clearly

Post-Interview Evaluation — Interviewer Should Determine:

4. Whether any further action is necessary
5. How the interviewee's account fits in with the rest of the investigation
6. Reflecting on the interviewer's coverage
7. Changes in the criticality and priorities of the assignment

SIMPLIFICATION OF INTERVIEW PROCESS (Socio-Psychological Parameters)

The interview process and extraction of information can be simplified by keeping in mind certain socio-
psychological parameters:

Parameter Explanation
(i) Making Expectation Easier to extract information when expectations are
Clear communicated BEFORE the interview starts. Creates a sense
where the person conforms to the interviewer's expectations.
Expectation of co-operation is achieved mostly through non-
verbal behaviour.
(ii) Recognition Many people tend to think about the recognition they will get. If
the interviewer is skilful enough, information can be extracted
in exchange of SINCERE RECOGNITION.
(iii) Philanthropic Humans identify with larger causes. If contribution to
Appeals investigation is linked to a HIGHER GOOD, getting sincere and
truthful responses becomes easier. Also helps increase the
respondent's self-esteem by being involved in the process.
(iv) Sympathetic There is a higher need of being UNDERSTOOD than being
Behaviour recognised. If the interviewer maintains sympathetic behaviour,
respondents tend to share their fears, failures and successes.
Such interviews are more successful.
(v) Purging Related to sympathetic behaviour but different. The interviewer
must also listen to unimportant/egocentric talk. If the
interviewer shows unavailability to unimportant talk,
respondents may not also be willing to share important
information.
(vi) Tangible or Although not directly related to interview, it helps interviewee
Measurable Rewards put value to the whole interview experience. May include
monetary benefit, increment, promotion, or retention of job.
Interviewer must be careful while promising rewards — must
remain within the limits of authority.
8.3 IMPORTANCE OF NON-VERBAL CUES
Communication is based on BOTH spoken words AND non-verbal cues.
Research studies have demonstrated that non-verbal cues like body language can be quite significant.

During an interview, understanding non-verbal cues can prove useful:

• Facial expressions
• Gestures
• Emotions
• Eye contact

Deepening understanding of non-verbal cues leads to more effective interviews. There are universal
facial expressions and inceptive responses through these like:
• Failure to make eye contact
• Looking the other way round while answering
• Rubbing hands

Understanding non-verbal cues may lead an interviewer to look for DECEPTION.

8.4 TYPE OF QUESTIONS AND SEQUENCE

(i) INTRODUCTORY QUESTIONS

Asked for collecting general information about the person being interviewed.

Objectives:
• To provide introduction
• To establish a rapport
• To establish the theme and expectation of the interview and verbally make the respondent
agree to co-operate
• To observe body language and non-verbal reactions of interviewee

IMPORTANT: Words used in the beginning should NOT be accusatory — this puts respondent in a
defensive frame of mind affecting all subsequent responses.

Preferred Vocabulary:
USE (Non-threatening) INSTEAD OF (Threatening)
Inquiry Investigation
Review Audit
Need help to gather some information Interview
Additional Paperwork Evidence
Interviewer should NOT intrude into personal space of the interviewee.
Example intro: 'I am Mr. ABC. I am here to revisit the procedures at the company here. I needed your
help for the same.'

(ii) INFORMATIONAL QUESTIONS

Asked for the information gathering process. Must be non-confronting and non-threatening in nature.

Key Points:
• Must be unbiased and should build an image of events in their order of occurrence
• Interviewer must perform ACTIVE LISTENING and gather as much information as possible
• To make respondent elaborate — show documents, data, information, reports
• Questions should be rephrased and asked in different words to give enough opportunities to
verify answers
• Should establish the correct sequence of events
• Start from GENERAL questions and then lead to SPECIFIC questions
• Begin with OPEN-ENDED questions (difficult to answer with YES or NO)

Examples of Informational Questions:

◦ Can you describe your job profile in the Company?
◦ What is the day-to-day function that you and your team perform?
◦ Explain the chain of command in your department.
◦ What are the vulnerabilities in the system and processes in your department?
◦ What do you think about this incident?
◦ Did you suspect that something wasn't right?
◦ Do you think someone in the Company is abusing their position?

(iii) CLOSING QUESTIONS

Asked to reconfirm the facts already gathered earlier in the interview, gather additional related
information, and conclude on a positive note.
Maintaining good rapport with interviewee in anticipation of future cooperation is important.

Examples:
◦ You knew that Mr. XYZ has been facing financial issues for 5 years, right?
◦ Mr. O has a relationship on the maternal side with the security vendor, right?
◦ Are there any other facts I need to know in relation to Mr. O?
◦ If you were in my shoes, what would you have done next?

While closing: take permission to contact again for further queries. Close with a handshake, namaste,
or as per prevailing cultural norms. Thank interviewee for their time and efforts.

(iv) ASSESSMENT QUESTIONS

Asked when interview is toward its end and admission-seeking needs to be done.

Purpose:
• To establish respondent's credibility in case of doubt
• To get verbal or non-verbal reactions from respondent
• Based on answers/reactions, interviewer decides whether to ask admission-seeking questions
• Designed to UNSETTLE a dishonest person — categorised as more sensitive questions

Dishonest Respondent Behaviour Honest Respondent Behaviour

Becomes impatient and defensive Remains calm and concerned
Becomes over-friendly Very co-operative
Shows casual indifference to Engages seriously with the process
consequences

Examples:
◦ Do you know there are stringent laws with regards to this misconduct on a Company level?
◦ Why do you think some employee should be justified in damaging the Company's property?
◦ Although you haven't done it, have you ever felt it justified in making use of your position in the
Company?
◦ Do you think most people will act as a whistle blower if they come across any incident?

(v) ADMISSION-SEEKING QUESTIONS

Asked to probe the accused or supporters of the accused, forcing them to make a mistake.

Purpose:
• May include direct accusatory questions — must be conducted with extreme care
• To clear the image of an innocent person
• To encourage the responsible to confess
• To sign a written statement acknowledging the facts

Examples:
◦ Our investigation has clearly established that you have accepted money from the vendor. What
was the reason?
◦ I am not asking if you are responsible, I know you have done it. This is the last opportunity for
you to explain your side.
◦ It is useless for you to deny anything; we have enough evidence. But we got to work this out —
you got to help me.
◦ I know you didn't mean to hurt anyone, but what you did was wrong. Now tell me the first time
when you did it.
8.5 CASE STUDY — UVN LIMITED (Insurance Claim Investigation)
Background:
• Fire broke out at UVN Limited (manufacturer/exporter of home furnishing items) on 1st August
2023
• Damages to building, plant & machinery and stocks
• Company estimated loss: Rs. 10 crores
• Lodged claim with CIN Insurance Limited (assets insured for Rs. 25 crores)

Suspicion Raised:
• Management failed to provide stock records for different products
• Records showing inward receipt of materials not provided
• CCTV recording details not provided despite cameras being installed
• Insurance surveyor suspected management was trying to MISLEAD

CA F (Forensic Accountant) Appointed:

• Visited affected site on 6th August 2023
• Interviewed: Mr. A (first noticed fire), Mr. B & C (responsible for inventory custody), Mr. O (CEO)

Interview Process Applied:

Interviewee Key Questions Asked
Mr. A (First Witness) Introduction and role; what he was doing when incident occurred;
what he saw first; how he reacted. CA F actively listened,
observed body language, did NOT interrupt during free account.
Mr. B & C (Inventory System of stock maintenance; prevailing system of reporting
Custodians) inventory position; nature of inventories in affected sections;
normal period for holding finished goods.
Mr. O (CEO) Stock record maintenance; average time taken to manufacture
products; names and details of overseas buyers; details of ready
stocks; position of saved stocks; availability of CCTV recording;
ownership documents of building; age and nature/age of
damaged machinery.

CA F followed all interview protocols: informed each person of reasons, background, audio/video
recording information; made each person comfortable; conducted interviews singly (not group); signed
written statements collected; evaluated how each account fits with the rest of investigation.
TEST YOUR KNOWLEDGE — MCQs WITH ANALYSIS

Q1. Simran, an interviewer is preparing for an interview. When planning the interview,
Simran should do which of the following?
Option Analysis
(a) Review the case file to CORRECT — Reviewing the case file is an essential
ensure that the important planning step to ensure all relevant information is
information has not been considered.
overlooked
(b) Select an uncomfortable WRONG — The interview location should make the
venue for each witness to interviewee feel comfortable and secure.
frame them
(c) Obtain enough evidence to WRONG — Purpose of interview is NOT to establish
establish the culpability of the guilt/culpability; it is to validate existing facts.
subject
(d) Gather all available WRONG — Documents shown should be copies and
evidentiary documents and should be used judiciously; not simply bring all
bring them to interview documents.
Answer: (a)

Q2. The interviewer should avoid terms that could result in a strong emotional response
during the introductory phase, such as:
Option Analysis
(a) Review Not threatening — it is actually the PREFERRED term over 'Audit'.
(b) Inquiry Not threatening — it is actually the PREFERRED term over
'Investigation'.
(c) Investigation CORRECT — 'Investigation' is an accusatory/threatening term. Use
'Inquiry' instead.
(d) All of the WRONG — 'Review' and 'Inquiry' are preferred, non-threatening
Above terms.
Answer: (c)

Q3. During the interview, ________ questions are those that are worded in a way that
makes it difficult for the respondent to answer 'yes' or 'no.'
Option Analysis
(a) Leading Leading questions actually suggest the answer, typically yes/no.
(b) Closed Closed questions specifically invite yes/no answers.
 (c) Open CORRECT — Open-ended questions (using Who, Why, Where,
What, When) cannot easily be answered with just yes or no.
(d) None of the WRONG.
Above
Answer: (c)

Q4. Which of the following is a good practice for taking notes during an interview?
Option Analysis
(a) Make WRONG — Notes should be taken continuously and
necessary contemporaneously, not added weeks later.
additions to
interview notes
within several
weeks of the
interview
(b) Record any WRONG — Interviewer should AVOID making opinions or
opinions or impressions about the interviewee.
impressions
regarding each
witness's guilt or
innocence
(c) Avoid slowing CORRECT — Taking notes should not impede the flow of the
down the interview; continuous comprehensive notes are best practice but
interview process should not slow the process.
to take notes
(d) Write down all WRONG — Notes need NOT be verbatim; they should capture
responses given relevant information in a precise and clear manner.
by the subject
exact letter-
perfect
Answer: (c)

Q5. Which of the following is the BEST example of an open question?

Option Analysis
(a) Why did you CORRECT — This is a true open-ended question. It requires a
decide to join this detailed, elaborative answer and cannot be answered with yes/no.
Company?
(b) Aren't you WRONG — This is a leading/closed question implying a specific
responsible for answer.
reviewing the
logs?
(c) You received WRONG — This is a leading question; it suggests the answer.
an increment this
year, didn't you?
(d) When did you CLOSE, but this can be answered with a single date — less open
start working at than option (a).
this Company?
Answer: (a)
QUICK REVISION — KEY POINTS FOR EXAM

Definitions to Remember:
Term Definition
Interview (FAIS 340) A structured meeting with individuals for eliciting information.
Lead Interviewer The professional conducting the interview, responsible for
and providing direction to the interview.
Open-ended Questions Questions formulated using Who, Why, Where, What, When
that are difficult to answer with just yes or no.
Discrete Recording Secret recording without consent — INADMISSIBLE as
evidence before competent authorities.

Key Don'ts for an Interviewer:

• Do NOT assume guilt or innocence
• Do NOT become irritated or angry
• Do NOT reveal the extent of your knowledge
• Do NOT prepare a list of predetermined questions
• Do NOT share key points list with interviewee before the interview
• Do NOT conduct interview in interviewee's own office
• Do NOT conduct one-on-one interviews (generally discouraged)
• Do NOT record without prior consent
• Do NOT share original documents — only copies
• Do NOT coerce, threaten, or offer inducements

Key Do's for an Interviewer:

• Keep an open mind
• Stay in control of yourself and the interview
• Use open-ended questions
• Ask questions in the right sequence
• Maintain eye contact
• Send a formal written invite before the interview
• Take continuous, comprehensive, objective notes
• Seek consent before recording
• Ensure confidentiality
• Get signed written statements
• Allow interviewee to add information before moving to next topic

Five Types of Questions (in sequence):

Type Purpose
1. Introductory Collect general info, establish rapport, set theme, observe body
language
2. Informational Gather information — non-confronting, open-ended, establish
sequence of events
3. Closing Reconfirm facts already gathered, gather additional related info,
conclude on positive note
4. Assessment Establish credibility in case of doubt, designed to unsettle
dishonest person
5. Admission-seeking Probe accused, force mistakes, encourage confession, clear
innocent person's image

Interview Phases (Recording Statements):

Phase Key Action
(a) Introduction & Building Explain background, rights, formalities, ground rules —
Rapport create shared understanding
(b) First Free Account Broad open-ended questions → active listening → NO
interruption
(c) Review and Repeat Summarise → confirm factual accuracy → invite additional
info

Non-verbal Cues to Watch For:

• Failure to make eye contact
• Looking the other way while answering
• Rubbing hands
• Facial expressions and gestures
• These cues may indicate deception

END OF CHAPTER 8 NOTES | ICAI Forensic Accounting | SET C