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?