Claudia Jones was reported to management after an employee discovered unexplained reconciling items in several of...

 

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Claudia Jones was reported to management after an employee discovered unexplained reconciling items in several of the company's customers' accounts. The value of the reconciling items totalled $320,000 which implied that the company was owed this amount from the customers. Some of these reconciling items seemed old stretching back to the previous 3 years. However, a check with each of the customers confirmed that the customer had promptly settled their respective account and that no amount was outstanding or disputed. Suspecting that the company might have been a victim of embezzlement, management hired you to investigate. From your investigation, you were told that Claudia, of late, had been moody in the office, sometimes exuberant, treating the office to drinks while at times she had seemed quiet, downbeat and self-absorbed. From public searches and other sources, you managed to compile the following financial information about Claudia: Required: a. Claudia Jones Assets: Cash on hand Bank Accounts Motor Vehicles Residence Jewellery collection Handbag collection Liabilities: ii. Loan Payable Income: Salary Expenses: Mortgage expense Car costs Other Living Exp 2020 $ 1,000 5,000 10,000 50,000 30,000 120,000 1,200,000 1,200,000 15,000 0 20,000 80,000 2021 $ 3,920 2,800 25,000 60,000 150,000 15,000 83,000 8,700 12,000 33,000 Use the net worth method to calculate the following (show all workings): i. Change in Net Worth from 2020 to 2021; Required income for 2021; Unknown Income for 2021. b. Based on the information you have, discuss if the suspect is committing embezzlement? c. Write a three-square plan to interview the suspect. d. What is the purpose of developing a three-square plan in the investigative interviewing process? Claudia Jones was reported to management after an employee discovered unexplained reconciling items in several of the company's customers' accounts. The value of the reconciling items totalled $320,000 which implied that the company was owed this amount from the customers. Some of these reconciling items seemed old stretching back to the previous 3 years. However, a check with each of the customers confirmed that the customer had promptly settled their respective account and that no amount was outstanding or disputed. Suspecting that the company might have been a victim of embezzlement, management hired you to investigate. From your investigation, you were told that Claudia, of late, had been moody in the office, sometimes exuberant, treating the office to drinks while at times she had seemed quiet, downbeat and self-absorbed. From public searches and other sources, you managed to compile the following financial information about Claudia: Required: a. Claudia Jones Assets: Cash on hand Bank Accounts Motor Vehicles Residence Jewellery collection Handbag collection Liabilities: ii. Loan Payable Income: Salary Expenses: Mortgage expense Car costs Other Living Exp 2020 $ 1,000 5,000 10,000 50,000 30,000 120,000 1,200,000 1,200,000 15,000 0 20,000 80,000 2021 $ 3,920 2,800 25,000 60,000 150,000 15,000 83,000 8,700 12,000 33,000 Use the net worth method to calculate the following (show all workings): i. Change in Net Worth from 2020 to 2021; Required income for 2021; Unknown Income for 2021. b. Based on the information you have, discuss if the suspect is committing embezzlement? c. Write a three-square plan to interview the suspect. d. What is the purpose of developing a three-square plan in the investigative interviewing process?

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Question Net Worth Assets Liabilities O Net Worth for 2021 Assets 1000 10000 30000 ... View the full answer