DOC PREVIEW
FIU ACG 6686 - Chapter 8: Investigating Concealment

This preview shows page 1-2-24-25 out of 25 pages.

Save
View full document
View full document
Premium Document
Do you want full access? Go Premium and unlock all 25 pages.
Access to all documents
Download any document
Ad free experience
View full document
Premium Document
Do you want full access? Go Premium and unlock all 25 pages.
Access to all documents
Download any document
Ad free experience
View full document
Premium Document
Do you want full access? Go Premium and unlock all 25 pages.
Access to all documents
Download any document
Ad free experience
View full document
Premium Document
Do you want full access? Go Premium and unlock all 25 pages.
Access to all documents
Download any document
Ad free experience
Premium Document
Do you want full access? Go Premium and unlock all 25 pages.
Access to all documents
Download any document
Ad free experience

Unformatted text preview:

Fraud Examination, 3ELearning ObjectivesConcealmentAspects of Documentary EvidenceSlide 5Slide 6Slide 7Slide 8Slide 9Slide 10Slide 11Slide 12Slide 13Slide 14Slide 15Slide 16Slide 17Slide 18Slide 19Slide 20Slide 21Slide 22Slide 23Slide 24Slide 25Fraud Examination, 3EChapter 8: Investigating ConcealmentCOPYRIGHT © 2009 South-Western, a part of Cengage LearningLearning Objectives•Describe concealment investigation methods and how they relate to fraud.•Understand the value of documents and electronic records in a fraud investigation.•List the different methods of obtaining documentary evidence.•Understand how to perform discovery sampling to obtain documentary evidence.•Explain how to obtain hard-to-get documentary evidence.2ConcealmentPerpetrators must conceal their fraud by covering their tracks, obscuring evidence, and removing red flags where possible. Accomplished by manipulating documentary evidence3Aspects of Documentary Evidence As evidence...Good Documents vs. Eyewitnesses4Aspects of Documentary Evidence Information on a Check5Information about the Maker and the Maker’s BankInformation about the Bank That Processes the Check1. Name and address of the account holder2. Bank number of the maker’s bank, including:a. City and state of bank b. Bank name3. Bank routing number of the maker’s bank. including:a. Federal Reserve Districtb. Branch office of Federal Reserve c. State of the maker’s bank4. Maker’s account number5. Check number6. Amount processed1. Branch number where processed2. Teller who processed the transaction3. Sequence number of the transaction4. Information about the nature of the transaction, including:a. Whether the check was cashedb. Whether the check was depositedc. Whether the check represented a payment.5. Account number of the person who presented the check6. Date of transaction7. Amount of transactionAspects of Documentary Evidence Investigators must understand the following aspects of documentary evidence: •Chain of custody of documents•Marking of evidence•Organization of documentary evidence•Coordination of evidence•Rules concerning original versus copies of documents6Aspects of Documentary Evidence Chain of Custody of Documentsa record must be kept of when a document is received and what has happened to it since its receipt7Aspects of Documentary Evidence Marking the EvidenceA transparent envelope should be used to store the evidence, with the date received and the initials of the examiner written on the outsideA copy of the document should be made, and the original document should be stored in the envelope in a secure place8Aspects of Documentary Evidence Organization of the EvidenceFraud cases can create tremendous amounts of documentary evidenceIn one case, 100 people worked full time for over a year to input key words into a computer so that the documents could be called up on demand during the trial—there were literally millions of documents.9Aspects of Documentary Evidence Organization of the Evidence (Example)FBI’s Document Conversion Lab (DocLab)•Saves incredible amounts of time and space•Increases search capabilities exponentially•Enables information sharing far and wide10Aspects of Documentary Evidence Organization of the EvidenceEvidence database should have the following:•Dates of documents•Sources of documents•The dates on which documents were obtained•Brief descriptions of document contents•Subjects of documents•Identifying or Bates number11Aspects of Documentary Evidence Coordination of Evidence12InvestigatorsManagement representativesLegal counselAccountantsExpert witnessesAspects of Documentary Evidence Coordination of EvidenceInvestigation Analysis SoftwareAnalyst’s Notebook from i2, Inc. Xanalys Watson13Aspects of Documentary Evidence Original Documents versus Photocopies•Originals are preferable to photocopies•In certain jurisdictions, only four situations permit photocopies14Aspects of Documentary Evidence Original Documents versus Photocopies1. The original document has been lost or destroyed without the intent or fault of the party seeking to introduce the secondary evidence.2. The original document is in the possession of an adverse party who fails to produce it after a written notice to do so, or when the party in possession is outside the jurisdiction of the subpoena power of the court.3. The document or record is in the custody of a public office.4. The original documents are too voluminous to permit careful examination, and a summary of their contents is acceptable.15Aspects of Documentary Evidence Obtaining Documentary EvidenceAuditsDiscovery Sampling16Aspects of Documentary Evidence Obtaining Documentary Evidence: AuditsAuditors conduct seven types of tests(1) Tests of mechanical accuracy (recalculations)(2) Analytical tests (tests of reasonableness)(3) Documentation(4) Confirmations(5) Observations(6) Physical examinations(7) Inquiries17Aspects of Documentary Evidence Obtaining Documentary Evidence: Discovery Sampling**Use full-population sampling to avoid when frauds may exist in only a few records18Sample ResultsInferences about the PopulationAspects of Documentary Evidence Obtaining Documentary Evidence: Discovery SamplingDocumentation of Discovery Sampling•document the specified population error rate and confidence level) •the method used for selecting the sample19Aspects of Documentary Evidence Obtaining Documentary Evidence: Discovery SamplingEvaluation of Errors•determine whether the errors were unintentional or are indicative of fraud20Aspects of Documentary Evidence Obtaining Documentary Evidence: Discovery SamplingConsideration of Sampling Risk •The risk that the sample was not representative of the population•Reduce sampling risk by:–Increasing the sample size –Using a random number table or generator to select the items to be examined21Aspects of Documentary Evidence Obtaining Documentary Evidence: Discovery SamplingConsideration of Nonsampling Risk•the risk that a finding will be misinterpreted•Reduced by:–careful planning, performance, and evaluation of the sampling procedure22Aspects of Documentary Evidence Obtaining Documentary Evidence: Hard-to-Get Documentary EvidenceThe most common examples are:•Web-based e-mail accounts•Private bank records•Tax returns•Brokerage records23Aspects of Documentary Evidence Obtaining Documentary Evidence: Hard-to-Get Documentary EvidenceThree ways to obtain documentary


View Full Document

FIU ACG 6686 - Chapter 8: Investigating Concealment

Download Chapter 8: Investigating Concealment
Our administrator received your request to download this document. We will send you the file to your email shortly.
Loading Unlocking...
Login

Join to view Chapter 8: Investigating Concealment and access 3M+ class-specific study document.

or
We will never post anything without your permission.
Don't have an account?
Sign Up

Join to view Chapter 8: Investigating Concealment 2 2 and access 3M+ class-specific study document.

or

By creating an account you agree to our Privacy Policy and Terms Of Use

Already a member?