Using fraud assessment questioning to detect fraud

IN BRIEF

Ask the Right Questions, Interpret the Answers

The increasing opportunity for employee fraud is a significant problem for all businesses. Fraud is often discovered through tips or complaints from individuals-most employees are willing to reveal fraud if asked the right questions. Fraud assessment questioning (FAQ) is a technique that CPAs can use to uncover problems and determine where to start looking for fraud.

The authors provide sample fraud assessment questions and advice on how to interpret employee responses-both verbal and nonverbal. If properly utilized, FAQ not only can uncover the suspected fraudster, but it can identify other high-risk individuals, expose internal control weakness, and build a perception of detection that contributes significantly to a fraud-free environment.