Managing Client Emotions in Forensic Accounting and Fraud Investigation

Manage client emotions in forensic accounting and fraud investigations

While many resources exist that outline the primary functional aspects of conducting a forensic accounting or fraud investigation, this book is the first of its kind in addressing the significance of client emotions during investigations and how important the management of those emotions is to the investigation as a whole. Forensic accounting expert Stephen Pedneault has nearly 30 years of experience conducting such fraud investigations, and has become an expert in this form of holistic engagement management. In this comprehensive resource, Pedneault shares his real-world experiences to help the reader understand exactly what role client emotions can play in a fraud investigation, and how to acknowledge and address the emotions of all parties right from the start.

Included in the book are pragmatic strategies for managing emotions throughout an engagement, starting with the initial client meeting. Readers will also learn how to develop their own personal approach to managing individuals’ emotions throughout an investigation, which has proven to be much more effective than ignoring or underestimating the role that emotions can play. The book:

• Is the first resource specifically addressing client emotions in fraud investigations
• Includes tips for dealing with emotions and managing expectations from the initial meeting
• Prepares practitioners for future engagements with a new, unique perspective on managing emotions

• Helps fraud investigators and forensic accountants develop their own personal approaches to dealing with individuals and their emotions

For accountants, auditors, fraud investigators, and others in the field, this complete, groundbreaking resource is the quintessential guide to managing client emotions in forensic accounting and fraud investigations.

Preface ix

Acknowledgements xi

About the Author xiii

Introduction 1

PART I: WHY ADDRESS CLIENT EMOTIONS? 3

Chapter 1: Encountering Client Emotions 5

Chapter 2: Choose to Address Client Emotions 17

Chapter 3: Complicating Factors 29

PART II: WHAT EMOTIONS WILL BE ENCOUNTERED? 49

Chapter 4: Identifying Client Emotions 51

Chapter 5: Identifying Client Emotions 71

Chapter 6: Identifying Client Emotions 87

Chapter 7: Suicide 109

Chapter 8: Stages of Grief and Magical Thinking 123

PART III: CLIENT EMOTIONS: STRATEGIES TOWARD SUCCESS 137

Chapter 9: Preparing for Client Emotions 139

Chapter 10: Managing Client Emotions 157

Chapter 11: Reacting to Client Emotions 169

Chapter 12: Final Thoughts 185

STEPHEN PEDNEAULT is Principal at Forensic Accounting Services, LLC, a public accounting firm specializing in fraud investigations, forensic accounting, employee embezzlement, and litigation support. He is Adjunct Professor of Forensic Accounting at the University of Connecticut School of Business. He is also a sought-after speaker on the subject of fraud investigation and forensic accounting.

In Managing Client Emotions in Forensic Accounting and Fraud Investigation, expert forensic accountant and fraud examiner Stephen Pedneault delivers an insightful and one-of-a-kind take on addressing and handling client emotions in the fraught context of a fraud investigation or forensic accounting engagement.

The author shares holistic engagement management techniques and strategies learned in his over 32 years of practice conducting fraud investigations. He offers field-tested methods, starting with the initial meeting and running through the conclusion of the engagement, that dramatically improve the likelihood of running an efficient and effective investigation.

In this book, you’ll learn to properly set expectations and identify, address, and manage the emotions typically experienced by clients involved in fraud investigations. From disbelief to betrayal, resentment, excitement, indifference, depression, and despair, this accomplished author walks you through how to prepare for the intense emotional reactions you’re likely to encounter during the engagement and how to best manage and react to them to maintain an orderly and productive process.

You’ll discover the importance of active listening and empathy for fraud investigators, as they contribute to the building of rapport and the delivery of satisfactory client service. You’ll also learn about the importance of emotion management in the handling of the most intense client reactions to fraud investigations, like suicidality and grief.

Perfect for fraud investigators, accountants, auditors, controllers, and lawyers, Managing Client Emotions in Forensic Accounting and Fraud Investigation is a must-read resource for anyone hoping to significantly improve their client management skills and deliver better, more efficient engagements.

IMPROVE YOUR FORENSIC ACCOUNTING ENGAGEMENTS BY PROACTIVELY MANAGING CLIENT EMOTIONS

Nothing can derail an accounting fraud investigation faster than a client whose emotions have run out of control. Managing and handling these emotions are the best way to ensure an orderly and efficient engagement and provide extraordinary client service.

Managing Client Emotions in Forensic Accounting and Fraud Investigation offers readers an intuitive roadmap to acknowledging and responding to the intense emotions that are often the products of fraud investigations and forensic accounting engagements. You’ll learn to deal with client emotions like disbelief, betrayal, resentment, excitement, indifference, depression, and despair while keeping the engagement on track and on schedule.

You’ll discover the benefits of tackling your client’s emotional reactions head-on rather than ignoring them and learn to handle the human side of fraud investigation in a way that dramatically improves your ability to offer excellent client service.

Ideal for accountants, controllers, lawyers, auditors, and fraud investigators, Managing Client Emotions in Forensic Accounting and Fraud Investigation will earn a place in the libraries of anyone interested in learning how to manage the intense emotions that arise out of high-stress professional engagements.