Guidance Note for Forensic Accounting and Investigation Standard No. 340 on Conducting Interviews outlines the necessary considerations for professionals conducting interviews as part of a Forensic Accounting and Investigation (FAI) assignment. The note aims to enable professionals to conduct effective interviews by providing guidance on the interview process, including key considerations for planning, conducting, and concluding interviews. It also emphasizes the importance of applying good interviewer etiquettes and using the interview outcomes appropriately. The guidance note promotes a meticulous and efficient approach to conducting interviews, ensuring they are carried out effectively. Additionally, the note offers practical examples and illustrations to assist professionals in applying effective interview techniques during and after the interview process.
Digital Accounting Assurance Board
The Institute of Chartered Accountants of India
1st June, 2023
GUIDANCE NOTE FOR FORENSIC ACCOUNTING AND INVESTIGATION STANDARD NO. 340 ON CONDUCTING INTERVIEWS
EXPOSURE DRAFT Approved by DAAB (On 1 June’23)
This Guidance Note provides technical clarifications and implementation guidance on how to prepare for and conduct work procedures on Forensic Accounting and Investigation Standard Number 340, on “Conducting Interviews,” issued by the Institute of Chartered Accountants of India (ICAI) and should be read in conjunction with all the Standards relevant to the topic. The contents of this Guidance Note are recommendatory in nature and do not represent the official position of the ICAI. The reader is advised to apply his best Professional judgement in the application of this Guidance Note considering the relevant context and prevailing circumstances.
1.0 Introduction
1.1. Interviews are a way of gathering evidence and information and also an effective means to corroborate the understanding of the documentary evidences. Written interview statements are used to record the information gathered making it an integral element of the work procedures.
2.0 Objectives
2.1. This Guidance Note (GN) outlines the considerations for the Professional conducting interviews during the course of a FAI assignment.
2.2. The overall objective of this GN is to enable the Professional to conduct effective interviews by understanding:
(a) The interview process, including certain key considerations concerning methodical planning, conducting and closing of interviews.
(b) How to apply good interviewer etiquettes.
(c) How to use the outcome of an interview in an appropriate manner.
2.3. Another aim of the GN is to help ensure that there is a meticulous approach in going about conducting the interviews, and how it should be carried out effectively and in an efficient manner.
2.4. The GN also provides examples and illustrations to help the Professional apply interview techniques in an effective manner during and after the interview.
3.0 Procedures
Planning an interview
3.1. There are multiple factors that go into planning and preparation for an interview which the Professional may consider, and which have been set out in the following paragraphs.
3.2. The interview objective, hypothesis and role of the interviewee in the matter at hand, are important to understand before developing an interview plan. An interview plan provides a framework on which to base the questioning, including the sequence and outline for questions on the activities or events.
3.3. The information obtained prior to the interview may be collated and analysed. If the information gathering process is incomplete, it may lead to an interviewee giving a false or evasive response.
3.4. Objective of an interview normally is to validate existing facts and also to seek additional information, where possible.
3.5. Linking the interview plan with certain specific hypotheses helps to make it an effective interview.
Interview participants
3.6. Interviews are normally conducted with the help of an Interview Team. One-on-one interviews are generally discouraged unless they are being recorded and the recording is available to be reviewed later. Sometimes they can be quite effective if the interviewer can establish some level of personal comfort or an “emotional equation” with the interviewee. But there is no hard or fast rule in this regard, and each situation needs to be evaluated on its own merits.
3.7. Interview Team: It is necessary to understand the roles and responsibilities amongst the interview team. The Professional conducting the interview (“Lead Interviewer”) is responsible for the interview and provides direction to the interview. For example, the Lead Interviewer may take some of the following approaches:
- Follow an outline questionnaire to provide structure to the interview, however, this is more to get clarity on the subject matter rather than used as a checklist. The success of an interview is usually linked to the agility, experience and flexibility of the Lead Interviewer to modify the questions and pose the right follow up questions, depending on the prevailing situation during the interview.
- Consider conducting a mock interview/role reversal, to prepare for the interview. This may help the Lead Interviewer to better prepare for unplanned situations during the interview.
- Invite a co-interviewer. The co-interviewer generally takes comprehensive notes of the meeting and also supplements the questions asked by Lead Interviewer, when given the opportunity. It is also the responsibility of the co-interviewer to manage and organize other documentary evidence and exhibits that may be required during the interview.
3.8. Interpreter: It may be necessary to consider the need for an interpreter in some interviews. The Professional would seek an interpreter who is aware of their obligation to translate accurately in a confidential manner.
3.9. Stakeholder Representatives: The Lead Interviewer may choose to have a senior representative of the Primary Stakeholder present in the interview as an observer. Where the interviewee is a woman, there needs to be another woman present in the interview, either as a senior representative, or otherwise, as required in the Standard. For example, the Lead Interviewer may choose to invite a senior representative from the Client’s human resources function for a subject interview.
Location of the interview:
3.10. Once the persons for the interview are determined, it is good practice to send a formal written invite to the interviewee, stating the time, place and purpose of the interview. When selecting a location, the Lead Interviewer may want to consider the following:
- Selecting an interview location conducive to conducting business and interview timings convenient to all parties, preferably during business hours, is advisable.
- Factor in the availability of amenities and space in the location (such as sufficient lighting, plug points, etc.) to enable smooth conduct of the interview. This also applies to interviews conducted in virtual mode such as through Zoom or Team meeting Apps. For example, if an interview is being conducted virtually, the Lead Interviewer may ensure the availability of the appropriate tools and connectivity.
- It is also recommended to conduct interviews under conditions of privacy.
3.11. It is recommended not to conduct interviews of more than one interviewee at a time, since the answers of an interviewee most likely influence the other.
3.12. While scheduling back-to-back interviews, it is good practice to estimate the time that will be required for an interview to avoid inconvenience. The Lead Interviewer may also factor in breaks required between long interviews.
Conducting an interview:
3.13. Interviews are dynamic and there cannot be a standard process that fits all situations. To increase the credibility and admissibility of the interview evidence, this should be gathered by the Professional without any inducement, threat or promise.
3.14. Opening an interview: The interview may begin with an introduction by the Lead Interviewer and other persons present. The Lead Interviewer should be courteous, polite but firm, and preferably converse in the language which the interviewee understands. This may help develop a rapport with the interviewee and making the interviewee comfortable. The Lead Interviewer may explain the purpose of the interview, lay the ground rules and explain the rights of the interviewee before the interview begins. At this stage it is good practice to ask the interviewee if they understand the procedure intended to be followed. See Annexure A for a template for pointers on how to open an interview.
3.15. Note taking: It may be decided at the beginning of the interview whether to take notes or not. As a good practice, it is advised that the Professional take continuous notes during the interview process. Comprehensive, objective, accurate and relevant interview notes that capture the key discussions during the interview may be used as a work paper. However, intermittent note taking may distract the interviewee or send an alert that a particular fact is of importance to the interviewer.
3.16. Audio or Video recording the interview: The interview can be recorded only with the prior consent of the interviewee. Such consent should also feature on the audio or video recording; discrete recording is inadmissible as evidence before Competent Authorities.
3.17. Confidentiality: The Professionals should always work towards maintaining the confidentiality. The Professional may exercise due discretion at the time of sharing any evidence or information gathered during the course of other interviews or other work procedures. Any document shared with the interviewee at the time of interview should be a copy and not the original. In case the engagement is covered by legal privilege, the Professional may consider obtaining appropriate advice and guidance from the attorney or counsel for the assignment.
3.18. A few good practices to be considered by the interviewer:
|
Good Practices |
Rationale |
| Keep an open mind | Do not assume either guilt or innocence: investigator’s role is to gather the facts in an impartial way. |
| Stay in control | Stay in control of both of the interview and of yourself. Do not let yourself become irritated or angry by insolent, insulting or aggressive comments from the interviewee. Patient, polite insistence will normally overcome these difficulties if the interviewee realises it is having no effect. |
| Ask the right questions in an open and cognitive way | Through the usage of open-ended questions, the lead Investigators encourages the interviewee to give a full response, by providing an uninterrupted account of the events. The interviewer should remain silent until a response is received. |
| Ask the right questions in the right sequence |
The order in which questions are put is important otherwise the record of the interview will be difficult to understand and follow sequentially the events and it could lead to claims of a deliberate attempt to confuse by the interviewee. |
| Do not reveal the extent of your knowledge | It can be a temptation to tell an interviewee under suspicion how much you know about their activities in the hope they will be unnerved to such an extent that they make an admission. This is likely to give the interviewee an opportunity to explain their actions if they know exactly how much you know. |
3.19. During an interview: The interview may begin with using broad, open-ended questions, and then proceed to more detailed questions to ensure all aspects of the situation are understood. Open-ended questions are usually formulated using: Who, Why, Where, What, When, for e.g.:
- “Can you tel ..”,
- “Describe for ..”,
- “What did you do next” or
- “What happened next?
3.20. The Lead Interviewer may review the interviewee’s answers with them to clarify on their responses. Repeating a summarized version of the account provided by the interviewee, and getting a confirmation from the interviewee about the factual accuracy, helps in confirming the Lead Interviewer’s understanding. It is also recommended to allow the interviewee an opportunity to add on to the information collected on a topic before moving on to the next. The question “Do you have any additional information with respect to policy violations and/or concerns?” can be used for such purpose.
Closing an Interview:
3.21. At the end of the interview, it is recommended that the Lead Interviewer provide a preferred mode of contact to the interviewee to get in touch with, in case the interviewee wishes to share any additional information after the interview.
3.22. An opportunity may be offered to the interviewee at the conclusion of the interview to document additional information and concerns, which may be included in the investigative report.
3.23. After the interview, any written statements taken may be reviewed, with the interviewee being invited to sign their name at the bottom of each page and initial any mistakes that have been corrected. All other persons present may also sign each page. In cases wherein this may not be feasible (for e.g.: in an interview conducted in virtual mode), it is good practice to obtain a signed copy of the statements at the earliest possible. Such signed minutes and statements can be used as evidence. It is important to note that the interview notes need not be verbatim or in question answer format, but must capture the relevant information in a precise and clear manner.
4.0 Annexures
Annexure A – Opening an Interview
Template on how to start an interview for a non- legally privileged case
My name is {name} and I am {role}. With me is {name} who is {role}. We are conducting this discussion today to gather facts about {matter at hand}.
The interview is/is not being recorded.
This is only a fact-finding exercise. Basis the facts established in our discussion today and other work procedures, we will be issuing a fact-finding report to the relevant stakeholders, who shall be responsible for determining what, if any, action needs to be taken.
This is a confidential discussion and you are requested to not share the topics discussed today with anyone.
At the end of the interview, we will be taking a written statement of the summary of the discussions (or, sharing a copy of the minutes of the meeting for your confirmation.) Your organisation’s Code of Conduct (or equivalent documents) requires you to be forthright, honest and co-operate with the investigation. You are expected to speak only the truth, and if its established later that you have not been honest and truthful in your replies, this may be held against you.
After the interview today if you wish to share any further details, you may contact {me} / {point of contact}.
It is {date and time} and we are conducting this meeting at {location}
Do you understand? Do you agree to providing accurate information? Do you have any questions?
Let’s start with your name and role in the organisation.
{The interviewer may then ask open ended as well as focused questions that would meet the objectives of the interview}
Annexure B – Interview Minutes
Template for minutes of interview for a non- legally privileged case
|
Case Reference.: |
|
| Name and role of the Professional: | |
| Date: | Time start: Time End: |
| Interviewee: | |
| Others Present and their role in the interview: | |
| Location: | |
| Minutes of Interview: | |
| Declaration that the interviewee has not provided any information / evidence under coercion, threat or inducement. | |
| Signature of Interviewer and other attendees: | Signature of Interviewee: |
| Annexure/ Exhibit (as required) | |
