Forensic Accounting

Question 4 10 Marks a. Jason Smith has been the chief executive officer of the Star Bank in Sydney for 3 years. Recently an auditor discovered some fraudulent loan activity where Smith overrode internal controls to approve loans to friends and family. The following investigation showed that these fraudulent loans exceeded $5 million. Smith claims innocence, but the Board is considering pursuing a civil case against him to recover the $5 million. Answer the following questions. (5 marks) Question Answer What is the difference between a civil case and a criminal case? Why might the Bank decide not to pursue this civil case? Why might the Bank to choose to settle out of court before the trial? Why may Smith prefer to settle out of court before the trial