Case 8
The financial data was calculated during a fraud investigation.
	YEAR 1	YEAR 2	YEAR 3
Assets:
Residence	280,000	280,000	280,000
Automobile	18,000	45,000	45,000
CD	5,000	15,000	15,000
Cash	8,000	8,000	2,000
Stock Portfolio	3,500	15,000	15,000
Boat		15,000	15,000
Liabilities
Mortgage	200,000	180,000	100,000
Auto Loan	12,000	30,000
Other Loan		18,000
Income:
Salary	55,000	90,000	130,000
Investment	800	800	800
Expenses:
Mortgage Expense	18,000	18,000	18,000
Auto Expense	5,000	9,000	9,000
Living Expenses	20,000	20,000	20,000
1. Without calculating the amount of unknown income, indicate possible red flags or trends you notice in the numbers above.
2. Now calculate the amount of total income and unknown income using the numbers given. Does it appear that a possible fraud exists? Could there be other explanations for the unknown income?
Case 10
Tom works for ZYX Company and is suspected of embezzling funds from the company. By searching databases on the Internet, talking with his ex-wife, and searching through his trash, you gather the following information:
Assets	120,000
Liabilities	70,000
Living Expenses	50,000
Known Income	60,000
Prior Years net worth	10,000
1. Use these data to figure out Toms income from unknown sources by performing a net worth calculation.
2. How can this information be used to motivate Tom to confess that he has stolen from ZYX Company?
Case 11
The financial data was calculated during a fraud investigation.
	YEAR 1	YEAR 2	YEAR 3
Assets:
Personal Residence	100,000	100,000	100,000
Automobile	20,000	40,000	90,000
Stocks and Bonds	30,000	30,000	30,000
Boat		30,000	30,000
CDs	25,000	25,000	50,000
Liabilities
Mortgage Balance	90,000	40,000
Auto Loan	10,000	5,000
Income:
Salary	37,000	40,000	42,000
Other	4,000	4,000	4,000
Expenses:
Mortgage Payments	6,000	6,000	6,000
Auto Loan Payments	2,000	2,500	2,500
Other Living Expenses	15,000	15,000	20,000
Sarah Welch was hired 15 years ago by Produce-R-Us, an importer of rare and exotic fruits. Produce-R-Us
was started by an imigrant family 20 years ago and has grown to a national company with sales of $10 million
annually. Although the business has grown, the family-owned business strives to maintain a "family atmosphere"
and streese trust. Because of Sarah;s honesty and hard work, the manager quickly promoted her, and she now
signs checks for amounts under $5,000 and also has responsibilities for Accounts Payable. Now, however, the
owners are suspicious of Sarah's recent lifestyle changes and have hnired you to termine whether Sarah is
embezzling from the company. Public records reveal the following:
Perform a net worth calculation using the data above. (Ignore interest in your calculations.)