Fraud Investigation Reports

Report Writing Introduction

• Report writing is a crucial skill in professional life
• A key to effective report writing is ensuring the reader quickly grasps the main findings

Report Types and Purposes

• Reports serve different purposes based on audience and objectives
• Fraud examination reports document investigation results and convey all evidence needed to evaluate a case
• Expert reports are prepared when a fraud examiner acts as an expert witness in litigation, needing expert qualifications and detailed methodology
• Short-form reports are concise summaries of key findings
• Long-form reports include all supporting documentation like interviews, exhibits, and evidence

Essential Components of Effective Reports

• Recommended sections for fraud examination reports include:
  • Background
  • Executive Summary
  • Scope
  • Approach
  • Findings
  • Summary
  • Impact
  • Recommendations
• The Background section should be brief and explain why the investigation started
• The Executive Summary should provide an overview of the investigation and summarize key findings
• The Scope section defines the objectives of the investigation
• The Approach section details the investigation team and methodology, broken into subsections:
  • Team members
  • Procedures
  • Individuals interviewed
• The Findings section should:
  • Clearly state if fraud was found
  • Provide the specific amount of money misappropriated (e.g., $197,773)
  • Present evidence chronologically with direct witness quotes
  • Avoid speculation
• The Summary section restates key findings concisely
• The Impact section quantifies the financial damage
• The Recommendations section suggests next steps like reporting to authorities and reviewing internal controls

Four Pillars of Report Writing

• A well-written report needs:
  • Accuracy
  • Clarity
  • Impartiality/relevance
  • Timeliness
• Accuracy involves including specific dates, names, amounts, and events, like invoices for $102,136 and $95,637 totaling $197,773
• Clarity means using straightforward language and avoiding technical jargon, with explanations for specialized terms
• Impartiality involves sticking to facts without editorializing, presenting inconsistencies, and letting readers draw their own conclusions
• Timeliness involves completing the report in a timely manner relative to the complexity of the case

Common Pitfalls in Report Writing

• Avoid overloading with unnecessary details
• Making accusations instead of stating facts
• Drawing conclusions beyond the evidence
• Using inconsistent formatting and organization
• Failing to provide context
• Using vague or ambiguous language

Importance of Visual Organization

• Good practices include:
  • Clear headings and subheadings
  • Numbered sections
  • Consistent formatting
  • Strategic use of bullet points
  • White space
• Visual aids include:
  • Link-network diagrams
  • Matrices
  • Time-flow diagrams
  • Time-series analyses
  • Timelines

Adapting Reports for Different Audiences

• Different audiences need different things:
  • Executives/Management need concise summaries with impact and recommendations
  • Legal counsel need detailed documentation and evidence
  • Law enforcement need evidence of criminal activity and financial impact documentation
  • Juries/Judges need clear, non-technical explanations
• Adapt the report by:
  • Including more documentation for legal counsel
  • Adding visual aids and simpler explanations for a jury
  • Providing more detailed analysis for technical experts

Conclusion and Key Takeaways

• Key principles of effective report writing:
  • Know your purpose and audience
  • Follow a logical organization with clear sections
  • Focus on accuracy, clarity, impartiality/relevance, and timeliness
  • Document your methodology
  • Be specific and factual
  • Use visual elements strategically
  • Revise and edit carefully
• Communication of findings effectively ensures work retains value
• Reports drive decisions, inform policy, and can determine justice