FRAUD EXAMINATION CHECKLIST

Transcription

1 1. Fully debriefed all informants and witnesses? 2. Documented the allegation in writing? 3. Established initial predication? 4. Identified all possible schemes or indicators of fraud? 5. Developed fraud theory? 6. Notified legal counsel and discussed whether to proceed? 7. Obtained, recorded, and filed all pertinent information and documents in the files? 8. Determined the potential loss? 9. Identified potential witnesses? 10. Determined if an error or mistake was made?

2 11. Reviewed internal controls? 12. Developed an investigative plan? 13. Determined the type of evidence needed to pursue? 14. Identified indicators showing intent? 15. Reviewed payroll records and canceled checks? Identified all bank accounts? Identified number of exemptions? Identified who might be endorsing checks? 16. Reviewed personal expense reports? Identified unusually high expenses? Identified credit card used?

3 Identified where suspect entertains clients? Identified duplicate submissions? 17. Performed background/asset check? Driver s license violations? Motor vehicle registration records? Regulatory licenses? Vital statistics? Building permits? Business filings? Fictitious names indices? Business licenses? Corporate records? Limited partnerships? Filings with securities commission(s)?

4 Local and state/provincial records? Criminal? Civil? Domestic? Probate? Real estate? Central/federal court filings? Criminal? Civil? Bankruptcy? Consumer credit records? Business reporting services? 18. Determined who should be interviewed?

5 19. Developed interview approach? 20. Performed financial analysis? Vertical analysis? Horizontal analysis? Ratio analysis? Industry analysis? Net-worth analysis? 21. Will an undercover operation be used? Plan developed? Approval received? Operation completed?

6 22. Will surveillance be used? Plan developed? Personnel set up? Surveillance curtailed? 23. Developed other informants? 24. Used mail covers? 25. Performed link analysis? 26. Identified computers that might be linked to investigation? Identify expertise needed? Data downloaded? Data printed?

7 27. Performed forensic document analysis? Handwriting? Reviewed altered documents? Ink analysis? Document restoration? 28. Interviews conducted? Interviews documented? Signed statements received? Identified other witnesses to interview? Interviewee knows how to get in touch with one or more investigation personnel? 29. Completed documentation and reported to management?

8 30. Employee(s) terminated? Received identification badge or deleted from system? Notified security to deny access to corporate premises? Personal belongings identified and arrangements made for employee to collect? 31. Report written? Background? Executive summary? Scope? Approach? Findings? Pertinent correspondence? Documentation of interviews? Pertinent evidence included? Report approved by supervisor?

9 32. Appointment made with law enforcement agency? 33. Follow-up contact made with investigators?

10 Documents To Be Examined To Do Date Received ACCOUNTING RECORDS Balance sheet Income statement Statement of cash flows Bank statement Expense account Computer password Other: Date of employment Signed ethics agreement (conflict of interest statement) Current address Prior addresses Spouse s name Maiden name Children s names Prior employment Prior supervisor Insurance information (covered dependents) Employee evaluation (performance reviews) Garnishments Vacation/holiday schedule Other: Bank statements Tax returns Insurance policies Mortgage records Credit card statements PERSONAL RECORDS

11 Documents To Be Examined To Do Date Received Telephone records Other business records Investments Vehicle information Diaries (calendars) PUBLIC RECORDS PERSONAL Civil filings Criminal filings Property tax records By name By address Tax liens Financing Other: Judgments Garnishments Domestic-relations records Divorce Property settlement Financial statements Tax returns Depositions Bankruptcy filings Financial statements Bank statements

12 Documents To Be Examined To Do Date Received Property ownership Education verification University/college Professional licenses Corporate records Company name Individual (incorporators) Assumed name index Vehicles owned Lienholder Boats owned Lienholder Aircraft owned Lienholder PUBLIC RECORDS BUSINESS Utility records Commercial filings (e.g., UCC filings) Tax receipts Tax liens Who actually pays the taxes? Post office box application Civil filings Assumed-name index Corporate charter (bylaws) Business credit history Dun & Bradstreet Better Business Bureau (or equivalent authority)

13 Documents To Be Examined To Do Date Received Other:

14 Neutral Witnesses: Name Phone Date Contacted Interview Completed Report Date

15 Adverse Witnesses: Name Phone Date Contacted Interview Completed Report Date

16 Co-conspirators: Name Phone Date Contacted Interview Completed Report Date

17 Suspects: Name Phone Date Contacted Interview Completed Report Date