You are auditing a bank, and someone provides you with ananonymous tip that an...

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Accounting

You are auditing a bank, and someone provides you with ananonymous tip that an employee is embezzling money from the bank.You decide to investigate the allegation. Your interviews withother bank employees confirm that the suspected embezzler has beenacting very strange lately. Some employees have seen the employeecrying in the bathroom and acting strangely in other ways. The bankrecently downsized due to poor economic growth, yet the suspectrecently bought a new Lexus. Based on some “helpful” hints frombank employees and through your own investigation, you discoverthat the mortgage taken out by the suspect three years ago for hispersonal home has recently been paid in full. After calculating thesuspect’s net worth, you determine that he has about $249,000 inincome from unknown sources this year alone. 1. What are possibleexplanations for why the suspect (1) is experiencing emotionalchanges and (2) has had an increase in unknown income? 2. Can youconclude from these facts that the suspect has indeed beencommitting fraud?

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Requirement 1 There are many thinkable reasons why the employee has showed behavioral changes There are also many conceivable reasons why the employee has experienced an upsurge in unidentified income One purpose for the unidentified income is that a See Answer

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In: AccountingYou are auditing a bank, and someone provides you with ananonymous tip that an employee...You are auditing a bank, and someone provides you with ananonymous tip that an employee is embezzling money from the bank.You decide to investigate the allegation. Your interviews withother bank employees confirm that the suspected embezzler has beenacting very strange lately. Some employees have seen the employeecrying in the bathroom and acting strangely in other ways. The bankrecently downsized due to poor economic growth, yet the suspectrecently bought a new Lexus. Based on some “helpful” hints frombank employees and through your own investigation, you discoverthat the mortgage taken out by the suspect three years ago for hispersonal home has recently been paid in full. After calculating thesuspect’s net worth, you determine that he has about $249,000 inincome from unknown sources this year alone. 1. What are possibleexplanations for why the suspect (1) is experiencing emotionalchanges and (2) has had an increase in unknown income? 2. Can youconclude from these facts that the suspect has indeed beencommitting fraud?