Managing Client Emotions in Forensic Accounting and Fraud Investigation by Stephen Pedneault

Author:Stephen Pedneault [Pedneault, Stephen]
Language: eng
Format: epub, pdf
ISBN: 9781119473565
Published: 2021-07-28T00:00:00+00:00

Although not an official task of a fraud engagement, the fraud examiner may be in a unique position to help a client work through an issue, like the brothers who no longer spoke with one another. Simply raising the issue and recommending that they start a dialog and try to find a way back to a relationship would be a great start. It would be unrealistic to think a fraud examiner's job extends to repairing relationships, but what I am recommending is that if the opportunity presents itself, see if there is anything you can do to help start the healing process. For me, getting the two brothers back together was more worthwhile and gratifying than solving their financial issues with their sister.

As a fraud examiner, you may find yourself in a unique position to provide objectivity and advice, not only within official fraud engagements, but also in any instance where you can draw upon experience to help resolve a matter.

When you think about what matters most in life, things like family, friends, companionship, health, and financial stability come to mind. When something happens to negatively impact any of these elements, an individual may become depressed. For example, if an individual invests his money with a friend who has promised that the venture will pay hefty dividends only to learn that the entire story was a ruse and their friend has stolen their life savings, that individual may become depressed. They may feel violated and stupid for having made such a decision.

In a business setting, if a business owner learns that his controller has stolen the company's funds, so that the owner cannot now pay his employees, vendors, and loans, he may become depressed. Everything he has worked for his entire life has been invested into his business, and he has now lost it all. Arresting the controller and filing a lawsuit will not likely recover the funds, and as a result the business may not survive for very long.

Suspects as well as victims will experience depression. For example, if a finance manager is found to have been stealing funds from her employer, she will now face termination. During her interview, the finance manager will be presented with the evidence and told that an insurance claim and a police matter are about to be initiated. The finance manager will be asked if she has any ability to repay the funds, which she most likely does not, since she has used that money to satisfy personal obligations. The finance manager now realizes that her spouse and family will find out what she's done, and she may face further consequences when that information comes out, such as her husband divorcing her. All these factors can lead to the suspect's experiencing depression.

In these instances, the fraud examiner's showing empathy is very powerful when working with these individuals, understanding how they would feel given the situation. There is a difference between sympathy and empathy, and I discuss this in a later chapter. During these

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.