Examine the following table and respond to the problems according to the instructions at the end:
Assume you are the lead forensic investigator for a potential fraud case at Tech Insights, Inc, a fintech company. After searching public records and other Internet sources, you accumulate the following financial information for the suspected fraud perpetrator, Stu Lawrence.
| Assets: | YEAR 1 | YEAR 2 | YEAR 3 |
|---|---|---|---|
| Residence #1 | $324,000 | $324,000 | $324,000 |
| Residence #2 | 183,600 | ||
| Stocks and bonds | 21,600 | 43,200 | 75,600 |
| Automobiles | 38,880 | 75,600 | 75,600 |
| Boat | 47,520 | 47,520 | |
| CD | 17,280 | 58,320 | 108,000 |
| Cash | 7,560 | 16,200 | 38,880 |
| Liabilities: | |||
| Mortgage balance #1 | 181,440 | 90,720 | 32,400 |
| Mortgage balance #2 | 183,600 | ||
| Auto loans | 25,920 | 82,080 | |
| Boat loan | 47,520 | 10,800 | |
| Income: | |||
| Salary | 58,320 | 66,960 | |
| Interest/other income | 8,730 | 17,790 | |
| Expenses: | |||
| Mortgage payments | 32,400 | 56,160 | |
| Auto loan payments | 12,960 | 12,960 | |
| Boat loan payments | 7,560 | 10,800 | |
| Other living expenses | 47,520 | 66,960 |
Problems:
- Determine whether there is a likelihood of fraudulent income based on the review of information you were able to obtain from your Internet search. If there is a likelihood of fraudulent income, calculate the amount. (Hint: Using the net worth method, calculate potential income from unknown sources for the years based on the unexplained increase/decrease in Stu’s assets and liabilities.) You must show how you calculated the amounts.
- As the lead forensic investigator, discuss the process that you would take during your interview with Stu to get him to confess. Include specific questions that you would ask, considering the order they should be asked.
Respond to the above Problems a and b. Your response to Problem A must be prepared in an Excel spreadsheet, showing formulas and calculations as applicable. The Excel spreadsheet for Problem A must be submitted along with your response to Problem B in a Word document. (Two documents submitted, total.)
Requirements:
- Write a paper of 2 pages in length for Problem B (double-spaced), not counting the title and reference pages, which you must include. Add an introduction and a conclusion
- Use terms, evidence, and concepts from class readings, including professional business language.
- Cite at least 3 scholarly sources not older than 5 years for this assignment. NO AI Content, please.