A company suspects that one of its employees is committing expense report fraud. The company hired a forensic accountant to investigate the case. The forensic accountant reviewed the employee's expense reports for the past 12 months and identified several suspicious transactions. The following table summarizes the transactions:

Expense Category	Total Amount Claimed	Legitimate Amount	Fraudulent Amount
Meals	$6,800	$5,500	$1,300
Travel	$12,000	$10,000	$2,000
Lodging	$9,000	$7,500	$1,500
Other	$4,000	$3,000	$1,000

Assuming that the forensic accountant's findings are correct, answer the following questions:

a) What percentage of the employee's claimed expenses are fraudulent?

b) What is the total amount of legitimate expenses claimed by the employee? c) What is the total amount of fraudulent expenses claimed by the employee? d) If the company decides to terminate the employee's employment and the employee is entitled to one month's severance pay equal to their average monthly salary, what is the total amount of severance pay that the employee will receive? Assume that the employee's average monthly salary is $7,000.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below a To determine the percentage of the employees claimed expenses that are fraudulent we ne... View the full answer