, FOR2601
ASSIGNMENT 1 SEMESTER 2
2026
DUE AUGUST 2026
1.1 Briefly discuss the process of fraud investigation. (15)
The process of fraud investigation follows a systematic approach that can be divided into distinct
stages or steps. According to the study guide, an investigation has a life cycle with a beginning,
middle, and end (FOR2601, 2015:57). The investigation process can be divided into six stages or
steps, which may overlap (FOR2601, 2015:57).
Stage 1: Reporting or Discovery
The process begins when a crime or transgression is reported or discovered. Reports can take many
forms and may be made verbally, in writing, telephonically, or electronically (FOR2601, 2015:58).
Detection can occur through various means including red flags, whistle-blowers, hotlines,
suspicious activity reporting, protected disclosures, statutory reporting obligations, and audit
procedures (FOR2601, 2015:58).
Stage 2: Preliminary Investigation
This involves an initial assessment of the reported matter to determine its validity and seriousness.
The investigator must determine what has happened and whether a law has been broken
(FOR2601, 2015:16). This stage involves gathering initial information and deciding whether to
proceed with a full investigation.
Stage 3: Follow-up Investigation
At this stage, the investigator conducts a more focused investigation, identifying witnesses,
collecting evidence, and interviewing relevant parties. The purpose of interviews is to gather and
verify relevant information (FOR2601, 2015:50). The investigator must use appropriate techniques
such as the cognitive interview technique to obtain the best information from witnesses (FOR2601,
2015:50).
Stage 4: Suspect Development and Apprehension
This involves identifying possible suspects based on the evidence gathered. The investigator must
be aware of the Judges' Rules when dealing with suspected persons, ensuring that proper cautions
are administered before questioning (FOR2601, 2015:22). The investigator must respect the
constitutional rights of suspects as contained in section 35 of the Constitution (FOR2601,
2015:20-21).
ASSIGNMENT 1 SEMESTER 2
2026
DUE AUGUST 2026
1.1 Briefly discuss the process of fraud investigation. (15)
The process of fraud investigation follows a systematic approach that can be divided into distinct
stages or steps. According to the study guide, an investigation has a life cycle with a beginning,
middle, and end (FOR2601, 2015:57). The investigation process can be divided into six stages or
steps, which may overlap (FOR2601, 2015:57).
Stage 1: Reporting or Discovery
The process begins when a crime or transgression is reported or discovered. Reports can take many
forms and may be made verbally, in writing, telephonically, or electronically (FOR2601, 2015:58).
Detection can occur through various means including red flags, whistle-blowers, hotlines,
suspicious activity reporting, protected disclosures, statutory reporting obligations, and audit
procedures (FOR2601, 2015:58).
Stage 2: Preliminary Investigation
This involves an initial assessment of the reported matter to determine its validity and seriousness.
The investigator must determine what has happened and whether a law has been broken
(FOR2601, 2015:16). This stage involves gathering initial information and deciding whether to
proceed with a full investigation.
Stage 3: Follow-up Investigation
At this stage, the investigator conducts a more focused investigation, identifying witnesses,
collecting evidence, and interviewing relevant parties. The purpose of interviews is to gather and
verify relevant information (FOR2601, 2015:50). The investigator must use appropriate techniques
such as the cognitive interview technique to obtain the best information from witnesses (FOR2601,
2015:50).
Stage 4: Suspect Development and Apprehension
This involves identifying possible suspects based on the evidence gathered. The investigator must
be aware of the Judges' Rules when dealing with suspected persons, ensuring that proper cautions
are administered before questioning (FOR2601, 2015:22). The investigator must respect the
constitutional rights of suspects as contained in section 35 of the Constitution (FOR2601,
2015:20-21).
