Documenting Interviews

1. Why Documenting Interviews Matters

An interview that is not properly documented is, for practical purposes, an interview that never happened. In fraud examinations, the information a witness or suspect provides may become the basis for disciplinary action, civil litigation, insurance claims, or criminal prosecution. Months or years later, the fraud examiner may be asked under oath exactly what was said, who was present, and whether the subject spoke voluntarily. Memory alone cannot carry that burden. Documentation serves several purposes:

• Evidentiary value – Notes, memoranda, and signed statements preserve admissions and facts in a form that can be produced in court or in an administrative proceeding.
• Credibility of the examiner – Contemporaneous, factual documentation demonstrates professionalism and protects the examiner against claims of coercion, misquotation, or fabrication.
• Continuity of the case – Other team members, attorneys, or law enforcement must be able to pick up the file and understand what each person said.
• Protection of the subject – A properly drafted statement that records voluntariness and the subject's own words protects the rights of the person interviewed as well as the integrity of the examination.

Because of this, the ACFE Fraud Examiners Manual treats documentation as an integral part of the interview process rather than an administrative afterthought, and the CFE Exam tests it in detail.

2. What 'Documenting Interviews' Covers

In the CFE curriculum, documenting interviews covers three related activities:

1. Note-taking during the interview – how, when, and what to write down while the conversation is in progress.
2. Memoranda of interview – the formal written record prepared after the interview and placed in the case file.
3. Signed (written) statements – the formal, first-person document obtained after a verbal confession in an admission-seeking interview, plus the related question of electronic recording.

3. How It Works: Note-Taking During the Interview

The guiding principle is that note-taking must never interfere with the flow of the interview or with the rapport the examiner has worked to build. The Fraud Examiners Manual sets out the following practices:

• Be unobtrusive. Note-taking is natural and expected, but the examiner should not make it the center of attention. Keep the notepad low and keep eye contact with the respondent as much as possible so behavioral clues are not missed.
• Start with routine questions. Begin the interview with introductory, non-threatening questions (name, position, dates of employment) and write those answers down. This conditions the subject to the sight of the examiner writing, so that later note-taking does not seem alarming.
• Record only pertinent facts. Do not attempt to write down everything the subject says. Attempting a verbatim transcript slows the interview, makes it awkward, and distracts the examiner from observing verbal and nonverbal behavior. Capture key facts, names, dates, amounts, and the respondent's exact words on important points.
• Do not react visibly to sensitive answers. If the subject says something incriminating or important, the examiner should not suddenly begin writing furiously. This signals to the subject that he has said something damaging and may cause him to become guarded or to retract. Instead, let the subject finish the answer, continue the conversation in a measured way, and record the point shortly afterward.
• Keep notes factual. Write what was said and observed, not conclusions or opinions about guilt. Interpretations, if any, belong in a separate working document, not mixed into the record of the subject's words.
• Do not let notes slow the pace. If the examiner needs time to write, a brief pause is acceptable, but the subject should not sit in silence for long stretches while the examiner catches up.
• Preserve the original notes. Original handwritten notes should be retained in the case file. Destroying notes after a memorandum is prepared can create the impression that something was concealed and may be challenged in litigation.

4. How It Works: The Memorandum of Interview

As soon as practicable after the interview, and ideally within 24 hours while recollection is fresh, the examiner should convert the notes into a formal memorandum of interview. Each memorandum is a stand-alone document that typically includes:

• The date, time, and location of the interview.
• The full name and identifying information (title, employer, contact details) of the person interviewed.
• The name of the interviewer and of anyone else present (a second examiner, a witness, counsel).
• A statement that the interview was voluntary (where applicable) and that no promises or threats were made.
• A concise, factual summary of what the respondent said, organized in a logical (usually chronological or topical) order.
• Any documents shown to or provided by the respondent.

Memoranda are generally written in the third person ('Smith stated that...'), are limited to facts, and avoid the examiner's opinions about the respondent's truthfulness. Observations about demeanor, if included, should be stated as facts observed rather than as conclusions ('the respondent paused for several seconds before answering') rather than ('the respondent was obviously lying'). A separate memorandum should be prepared for each interview. The memorandum, together with the original notes, forms the permanent record that later supports the written report of the examination.

5. How It Works: Signed Statements After a Confession

In an admission-seeking interview, once the subject has made a verbal confession, the examiner should obtain a written, signed statement. A verbal admission can later be denied or recharacterized; a signed statement in the subject's own words is far harder to attack. Key rules:

Who prepares it. The statement may be written by the subject, but in practice the fraud examiner usually prepares it so that no essential element is omitted. Even when the examiner writes it, the statement is composed in the first person ('I, John Doe, ...') as though the subject wrote it, using plain, simple language and, where possible, the subject's own phrasing. Legalistic language is avoided. Note that the word 'confession' is not used in the document or in conversation with the subject; it is referred to as a 'statement.'

Essential elements. The Fraud Examiners Manual identifies the following elements that a signed statement should contain:

1. Voluntariness – a declaration that the statement is given freely, without threats, promises, or coercion.
2. Intent – a clear acknowledgment that the subject knew the conduct was wrong at the time it was committed. Without intent, the document is of little legal value.
3. Approximate dates of the offense (when it began and ended).
4. Approximate amounts of the losses.
5. Approximate number of instances or transactions.
6. Willingness to cooperate – including, where applicable, a statement of willingness to make restitution.
7. Excuse clause – the subject's own rationalization or moral excuse. Including this does not weaken the statement; it makes it more believable and reflects how the admission was actually obtained.
8. Acknowledgment that the subject has read the statement and understands it.
9. Truthfulness clause – a declaration that the statement is true and correct.

The word 'approximate' is used deliberately for dates, amounts, and instances. Subjects rarely know exact figures, and precise numbers that later prove inaccurate can be used to attack the entire statement.

Execution of the statement. The subject should read the entire statement (or have it read aloud). Any errors are corrected by hand, and the subject initials each correction and each page. The subject signs and dates the document, and the signature should be witnessed, ideally by two witnesses (usually the examiner and a second person). If the subject refuses to sign, the examiner should still document the verbal admission in detail and note the refusal; the unsigned statement and the memorandum still have value.

One statement per offense. There should be only one signed statement for each offense. Taking multiple statements covering the same conduct invites inconsistencies that defense counsel can exploit. If the subject admits to more than one distinct offense (for example, a billing scheme and a separate expense reimbursement scheme), a separate statement is prepared for each.

6. Electronic Recording

Audio or video recording can seem like the perfect documentation method, but the Fraud Examiners Manual urges caution. Recording may inhibit the respondent and damage rapport, and it creates a complete record of everything the examiner said as well, including any misstatements. Recording laws vary: some jurisdictions require only one party's consent, while others require the consent of all parties, and covert recording may be illegal and could expose the examiner to liability. As a general rule, the examiner should know the applicable law, obtain consent when recording, and not rely on recording as a substitute for notes and a signed statement. In most fraud examinations, careful notes, a prompt memorandum, and a signed statement are the preferred documentation.

7. How Examiners Apply These Principles in Practice

Imagine an examiner interviewing a payroll clerk suspected of creating ghost employees. The examiner opens with routine questions about the clerk's duties and writes the answers down openly. As the questions become more pointed, the examiner keeps the pad low and keeps eye contact. When the clerk finally says, 'I only did it because they cut my hours,' the examiner does not lunge for the pen; she nods, continues with a confirming question, and notes the words a moment later. After the verbal admission, the examiner drafts a one-page statement in the first person: it states the clerk is giving it voluntarily, that she knew adding fictitious names to the payroll was wrong, that it began 'approximately in March of last year,' that the total was 'approximately $18,000' over 'approximately 20 pay periods,' that she did it because her hours were cut, that she is willing to cooperate and repay the money, and that she has read the statement and it is true. The clerk corrects the spelling of a name, initials the change, initials each page, signs, and two witnesses sign. That evening the examiner writes the memorandum of interview in the third person and files it with the original notes and the signed statement.

8. Exam Tips: Answering Questions on Documenting Interviews

The CFE Exam tests this topic through multiple-choice and true/false items that reward precise recall of the Fraud Examiners Manual's rules. Keep the following in mind:

• Know the 'opposite' traps. Exam writers frequently present the correct practice reversed. Examples: 'The examiner should write down everything the subject says' (false – record only pertinent facts); 'The examiner should begin taking detailed notes as soon as the subject makes an admission' (false – do not react visibly; note it afterward); 'Notes should be destroyed once the memorandum is complete' (false – retain originals).
• Remember the sequencing trick. Start the interview with routine, non-sensitive questions and take notes on them so the subject becomes accustomed to note-taking before sensitive topics arise.
• Memorize the nine elements of a signed statement. Questions often ask which item is or is not a required element. Voluntariness, intent, approximate dates, approximate amounts, approximate number of instances, willingness to cooperate, excuse clause, acknowledgment of having read it, and truthfulness. If an answer choice says the statement must contain 'exact' dates or amounts, it is wrong; the word is 'approximate.'
• Intent is the element most often tested. A statement without a clear acknowledgment that the subject knew the conduct was wrong is legally weak. If a question asks what is missing from a sample statement, look for intent first.
• The excuse clause is included, not excluded. Candidates often assume the rationalization should be left out because it seems to minimize guilt. The Manual says to include it; it adds credibility.
• First person vs. third person. Signed statements are written in the first person (as the subject speaking). Memoranda of interview are written in the third person (the examiner describing what the subject said). Do not confuse the two.
• Who prepares the statement. It may be written by the subject, but the examiner typically prepares it to ensure completeness. Either answer may appear; choose the one that matches the Manual's emphasis in the question's wording.
• One statement per offense. If a question describes a subject who confessed to two different schemes, the correct answer is two separate statements, not one combined statement and not multiple statements for the same scheme.
• Signatures, initials, and witnesses. Corrections are initialed by the subject; each page is initialed; the signature is witnessed. A refusal to sign does not make the admission worthless, but the refusal should be documented.
• Timing of the memorandum. Prepare it as soon as possible after the interview, while details are fresh. Answers suggesting it can be done 'at the end of the engagement' are wrong.
• Opinions stay out. Memoranda and notes record facts and the subject's words, not the examiner's conclusions about guilt or credibility.
• Recording questions hinge on consent and law. If a question involves taping an interview, the correct answer will usually emphasize knowing the applicable law, obtaining consent, and recognizing that recording is not generally the preferred documentation method in fraud examinations.
• Vocabulary matters. The Manual avoids the word 'confession' in dealing with the subject; it uses 'statement.' Exam answers reflecting that preference are more likely correct.
• Read for the single best answer. Several choices may be partially true. Choose the one that most completely reflects the Manual's stated rule, especially where the question uses absolute words such as 'always,' 'never,' or 'all,' which are usually clues to an incorrect option unless the Manual itself states the rule absolutely (for example, 'only one statement per offense').

9. Quick Review Summary

• Take notes unobtrusively; record key facts, not everything; start with routine questions; do not react to admissions; keep notes factual; retain originals.
• Write the memorandum of interview promptly (within about 24 hours), in the third person, with date, place, persons present, voluntariness, and a factual summary.
• After a verbal confession, obtain a first-person signed statement containing voluntariness, intent, approximate dates, approximate amounts, approximate number of instances, willingness to cooperate, excuse clause, acknowledgment of reading, and truthfulness; have corrections and pages initialed; obtain witnessed signature; one statement per offense.
• Electronic recording requires knowledge of the law and consent and is not a substitute for notes and a signed statement.

Master these rules, watch for reversed statements and the word 'approximate,' and questions on documenting interviews become among the most predictable points on the CFE Exam.