FORENSIC INVESTIGATIONS AND FRAUD REPORTING IN INDIA
Authors: Sandeep Baldava and Deepa Agarwal
Reviewed by Satish Shenoy
A home without books is like a body without a soul. My major investment in life is books. I was delighted when my professional colleagues Sandeep and Deepa gave me this book, fresh from the press. Something inside me instantly told me that I need to read this book cover to cover. Our minds are truly shaped by the books we read.
Here are a few thoughts on the book.
This book, aimed to benefit a cross-section of professionals, including Forensic Practitioners, Independent Directors and Audit Committee Members, CEOs / CFOs / CHROs, Statutory Auditors, Internal Auditors, Corporate, Legal, Accounting and Compliance teams and students alike, introduces all the essential ideas that are to be found in the work of Forensic Investigations and Fraud Reporting in India in a concise and straightforward manner. Each activity is described not only in terms of its relevance but also the science and reasoning that underpins it.
Be insatiably curious. Ask ‘why’ a lot – and that’s exactly what the authors did. While employing examples from Forensic Investigation, the book uses principles and ideas applicable to most of the forensic sciences. The authors examine the role of the investigator, describe the fundamental methods for investigation, discuss the optimal way to organise evidence and explore the most common reasons why some investigations fail. The book provides case studies that exemplify proper communication of findings. Concise and illustrative, this volume demonstrates how scientific methods can be applied to investigation in ways that avoid flawed reasoning while delivering convincing reconstruction scenarios. Investigators can pinpoint where things went wrong, providing valuable information that can prevent another catastrophe.
As I dived deep into the book, I told myself, ‘Don’t read the book and be a follower, read the book and be a student’. Covering a range of fundamental topics essential to modern Forensic Investigation, the book presents contributions and case studies from the personal files of experts in the field. It discusses the intersection of law and forensic science, how pieces of information become evidence and how courts decide whether an item or testimony is admissible. It provides insights on how practitioners must follow evidence all the way from the incident scene to laboratory analysis and even on to the judicial authorities. Going beyond theory to application, the book incorporates the wisdom of the authors who discuss anonymous real life case studies and their rich experience in the subject. Each chapter begins with an introduction and ends with a conclusion. The ‘Expert Speak’ sections at the end of a few chapters showcase contributions from high-profile experts in the field.
Life is like a book – don’t jump to the end to see if it is worth it. Going by the size of the book, I was indeed tempted to jump to the end. But my daughter Sneha read my mind (she has this uncanny knack) and remarked, ‘Daddy, just enjoy every page of it and you will find the script more interesting and exciting’. The words hit me like it was the last word said on the subject. So let me continue…
A practical, accessible and informative guide to the science of Forensic Investigations and Fraud Reporting, the book has 20 chapters very logically divided and covering the fundamentals of White Collar crime; Ethics, Integrity and Fraud; Governing Framework including roles and responsibilities of Stakeholders towards prevention, detection and investigation; Financial Statements Fraud, including roles and responsibilities of Statutory Auditors; Evolution, types, methodology and approach to FRM and Forensic Investigation; Frauds at Financial Institutions, including banks; Forensic Standards; Cyber Fraud Risks with illustrative examples of reporting. I particularly enjoyed the case studies which encompassed various facets of business such as procurement, critical information leakage, phishing, window dressing and fund diversion – the learnings are immense. I also appreciate the ease with which the roles of the Boards, the Internal Auditor, the CFOs and other CXOs are explained. The emphasis on the science of law enforcement, how evidence is gathered, processed, analysed and viewed in the courtroom and more, were a delight. This informative book also includes an extensive index, adding to its usefulness. It contains over 100 case studies, case laws and examples.
Good books are like good company. As I read the book, I got the feeling that I am in good company – well done, Sandeep and Deepa. Forensic document examination is a long-established specialty and its practitioners have regularly been shown to have acquired skills that enable them to assist the judicial process. The book introduces all the essential ideas that are crucial in the work of the Forensic Document Examiner and Fraud Reporting in a concise and straightforward manner. Each examination type is well described in detail in chapter 12.
The reader will be able to relate the different kinds of interpretative skills used by the document examiner to those used in other forensic disciplines. Besides being an invaluable text for readers, the book will also be a useful reference for researchers new to the field or practitioners looking for an accessible overview.
Written in an easy-to-understand format, this outstanding guide by two of the leading professionals with wide experience in Forensic Investigations and Reporting introduces you to the basics of Forensic Investigation and Fraud Reporting. It teaches us excellent ways to make our investigation solid and successful. It is packed with valuable information about the details of collecting, storing, and analysing all types of physical evidence.
Life is a book of mysteries; you never know which page will bring a new twist; so keep on reading and happiness will come suddenly – this is precisely what I felt when reading this book. Most investigations begin at the end of the story, namely, after the collapse. In many instances, information about the last event and the starting event is known reasonably well. Information about what occurred between these endpoints, however, is often unclear, confusing and perhaps contradictory. Chapter 13 explains how scientific investigative methods can best be used to determine why and how a particular event occurred and how it is to be reported.
Rules related to admissibility of evidence in India (13.6.4.3) explore the legal implications of forensic science – an increasingly important and complex part of the justice system. In the ‘Expert Speak’ section of chapter 13, Aditya Vikram Bhat, Senior Partner, AZB & Partners, brings out the different facets of applicability and importance of attorney-client privilege.
Assessing the strengths and limitations of each kind of evidence, the authors also discuss how they can contribute to identifying the ‘who,’ ‘how,’ and ‘whether’ questions that arise in criminal prosecutions; they draw on the depth of their Forensic Investigation and Fraud Reporting experience to provide a well-rounded look at these increasingly critical issues. Case studies have very effectively brought the issues to life and show how forensic science has been used in real-world situations.
The reader will learn how real-world forensics experts work every day in fields as diverse as Biology, Psychology, Information Technology and more. If you are interested in a forensics career, you will find out how to break in and the education you will need to do the type of forensics work that interests you the most. Written for the true forensics fan, the book does not shy away from the details – why are frauds committed (1.7), Evolution of Fraud (1.8), Definition of Fraud (chapter 2), Integrity and Ethics (chapter 3), Reporting Regulations under various statutes (chapter 4), Role of Directors (chapter 6), Role of Internal Auditors (chapter 7), Financial Statement Frauds (chapter 9), Identification of Frauds, including role of whistle-blowers (chapter 10), Types of Forensic Investigation in India (chapter 12), Audit vs. Forensic Investigation (chapter 14), Forensic Accounting and Investigation Standards by the ICAI (chapter 18), Cyber Fraud Risk and the Auditor’s Role (chapter 19) and lastly the Illustrative Reporting (chapter 20). What more can one ask from one book?
The book includes coverage of physical evidence, evidence collection, crime scene processing, pattern evidence, fingerprint evidence, questioned documents and computer and digital forensic evidence. The authors’ 40-plus years of investigation, forensic science laboratory experience, regulatory compliance and auditing experience is brought to bear on the application of forensic science to the investigation and prosecution of cases.
A truly international and multi-disciplinary compendium of current best practices authored by the ones amongst the best in the profession, the book covers current trends and technology advances in various disciplines including forensic science. The book serves as an invaluable resource and handbook for forensic professionals, auditors and directors, audit committees and CEOs / CFOs / CHROs in India
Let me list a few new learnings for me from the book – The Fraud Diamond Theory (1.7.2), Theory of Dark Triad Personality (1.7.3), Robinhood Fraudsters (1.7.4), Working of a Ponzi Scheme (Amit Garg ‘Expert Speak’), the Social Psychology of Corruption (3.4), SOX Section 302 (6.2.7), Whistle-blower complaints – CVC (10.14), some of the rules related to Admissibility of Evidence (13.6.4.3), few Insights in using Predictive Analytics for Fraud Prevention (15.6.6) and few aspects of Common Security Elements that entities may use to prevent or detect a cyber-attack (19.6.1).
I particularly liked the way that important topics were handled and here are a few examples – Case studies of White Collar Crime (1.7.6), Social Psychology of Corruption (3.4), Management’s Responsibility to
prevent Fraud (5.2), Internal Auditor in Spotlight (7.6), Stages of Identification of Fraud (8.5), Financial Statement Frauds (9.6), how to Mitigate Common Fraud Risks (9.9), Best Practices for an effective Whistle-blowing Mechanism (10.15), Impact of Whistle-blowing Systems (10.16), Learnings from Arthasastra (11.3 and 11.4), the entire chapters 12 to 14 (which to my mind are the fulcrum of the book), Case Studies on Banking Frauds (16.9 to 16.12), chapter 17 on Case Studies (real life examples based on the rich experience of the authors) and chapter 18 on ICAI Standards (which I am so proud to be an integral part of).
I read with great interest chapter 19 on Cyber Risk which appears towards the end. I must mention that the focus is limited to the role of auditors but the topic deserved more attention. Perhaps the authors will delight us with this and more in the next edition.
Let me read the mind of the authors before they started this book project, ‘If there is a book that you want to read but has not yet been written, write it.’ That’s precisely what Sandeep and Deepa have done.
A few final take-aways:
* It is better to fail with honesty than succeed with fraud.
* One best book is equal to hundred good friends.
* That’s the thing about books. They let you travel without moving your feet.
* A clear sign we are stupid is if we do not read new books.
* The problem with a good book is, the moment you read that last word, you wish you hadn’t.
Well done, Sandeep and Deepa. I am proud of you.
