Fraud Investigation, Engagement Processes, the Evidence Collection Process

The fraud investigation process involves systematically gathering and reviewing evidence to document the presence or absence of fraud. According to Hopwood et al. (2012), the four steps involve the engagement process, the evidence collection process, the reporting process, and the loss recovery process. Simultaneously, the engagement process involves a series of steps that start with the investigator’s first contact with the case and concludes with a complete agreement regarding the fraud investigation (Harol , n.d). The evidence collection process involves the various steps in which evidence supporting the investigation's objectives and scope is collected. Four types of evidence gathered in the evidence collection process are physical evidence, documentary evidence, observational evidence, and interview evidence. The investigator should build a fraud-triangle profile of the suspect that includes both work and personal data related to the three sides of the fraud triangle: opportunity, pressure, and rationalization. 

Reference  

Hopwood, W. S., Leiner, J. J., & Young, G. R. (2012).  Forensic accounting and fraud examination . New York, NY: McGraw-Hill. 

Harol , P . Investigation Practice and Process (n.d) PowerPoint presentation. Retrieved from https://ukznextendedlearning.com/wp-content/uploads/2019/08/Forensic-Practice_S.pdf