Tom is a senior$-$level project manager at a small construction management company. The company is comprised of less than $20$ individuals and has brought in revenue of over $$5$ million each year for the past five years. Due to the close working relationships of all coworkers, many of the day$-$to$-$day responsibilities are shared and there seems to be a lack of segregation of duties. This is especially true on the upper$-$management level. Tom is currently the acting CFO and works with the accountants in the preparation of financial statements.

Two other senior$-$level coworkers have noticed a change in Tom$$s lifestyle and have become concerned regarding the source of his finances. He shows up to work in expensive vehicles, brags about his lavish weekend trips, and his choice in work attire has certainly upgraded over the past year. His coworkers are concerned because net profit is down and the firm keeps committing to large supply contracts with the same vendor. When confronted in a meeting, Tom is argumentative and dismissive, which are characteristics not seen from the Tom his coworkers have grown to respect.

The firm hires you to conduct an investigation into this. Below is a general outline of Tom$$s spending for the year:

In Excel, use the data below to create a Form $4822$ similar to the one in Figure $6\mathrm{.}2$ of your textbook to determine Tom$$s living expenses.

Analyze the data and form an opinion on Tom$$s spending.

Is there enough evidence to determine that a fraud may be taking place?

What areas within the company can you look at to determine whether fraud has occurred?