Description
You have been assigned to a case to explore for unreported income and possible embezzlement of funds from a small financial service organization.
Another staff member used a public records search and other data from the company to complete a financial profile of the suspect. The data sheet has been given to you for further analysis.
This data sheet profile includes a balance sheet and income and expense data. You are aware that there may be other assets that could not be identified or traced to the suspect. Nonetheless, you will prepare a net worth analysis and discuss several observation and issues.
Use the suspect data to do the following:
- Use the indirect method to prepare a net worth analysis.
- Prepare a discussion analysis of the results. Guidelines are as follows:
- Discuss the entire 5-year period of data
- Be substantive. Do not just repeat the numbers on the schedule without further critical analysis.
- Determine whether results indicate if fraud may be occurring or not. Explain why you believe this.
- Identify other factors you would need to consider to determine that fraud has occurred.
Download Suspect Data.
Grading Guidelines
| Content: Includes extent and depth of research | 60–70% |
Writing and presentation:Mechanics/organization | 30%–40% |
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Explanation & Answer
Attached.
Running head: SUSPECT DATA ANALYSIS
Suspect Data Analysis
(Student Name)
(Course Name)
August 10, 2017
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SUSPECT DATA ANALYSIS
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Indirect Method to Prepare a Net worth Analysis
We use the indirect method to prepare a net worth analysis. Because the indirect method
puts forth modifications because the income statement is set up on a collection bookkeeping
premise and should be changed over to a money based way to deal with the figure the income
from an organization's working exercises. The indirect method likewise makes changes by
including back non-working activities tha...
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