Question: Evidence collection process in a fraud case Instructions 1. Analize the following information: Indirect methods of income from unknown sources Assume that the following information
Evidence collection process in a fraud case
Instructions
1. Analize the following information:
| Indirect methods of income from unknown sources Assume that the following information is derived from reliable sources: | ||||||
|---|---|---|---|---|---|---|
| Net Worth | Lifestyle Approach | Income from Known Sources | ||||
| Description | Amount | Asset | Liability | Sources | Application | |
| Boat | 25,000 | |||||
| Boat Loan | 20,000 | |||||
| Boat Loan Payments | 5,000 | |||||
| Car | 40,000 | |||||
| Car Loan | 40,000 | |||||
| Car Loan Payments | 2,000 | |||||
| Deposit to bank account | 400,000 | |||||
| Dividends reported on Tax Retun | 5,000 | |||||
| Down Payment Boat | 12,000 | |||||
| Down payment Car | 7,000 | |||||
| Down Payment Time share | 6,000 | |||||
| Down Payment Vacation home | 15,000 | |||||
| House | 275,000 | |||||
| Home equity loan | 35,000 | |||||
| Home Equity Loan Payments | 4,000 | |||||
| Income on Tax Return | 1,000 | |||||
| Mortgage | 200,000 | |||||
| Mortgage payments | 3,000 | |||||
| Mutual funds | 20,000 | |||||
| Purchase Mutual Funds | 20,000 | |||||
| Time share | 50,000 | |||||
| Vacation homes | 250,000 | |||||
| Wages on the w-2 and tax return | 75,000 | |||||
| Net Worth | ||||||
| Estimated Net Cash Income | ||||||
| Estimated income from unknown sources |
Using the information above .Assume that the sources have been deemed reliable, what is your assessment of the validity of your estimate of income from unknown sources? why?
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