Accounting Question

ACC 692 Module Eight Assignment Guidelines and Rubric

Scenario

You are a senior fraud investigator at Brothers Financial Forensics Firm and are investigating a potential financial fraud scheme. A large sum of money has gone missing from Resolve Tech Inc. Two individuals are under suspicion for this crime. It is time to put on your detective hat to analyze financial information and behavioral clues to determine who is responsible for this missing cash.

Directions

For this assignment, there are two deliverables. Use the net worth analysis spreadsheet linked in

What to Submit

and the case study linked in the

Supporting Materials

section to perform a net worth analysis, and then write a short report to justify why a certain individual has committed fraud.

Part One: Net Worth Analysis

Use the spreadsheet and case study to perform a net worth analysis. Specifically, you must address the following rubric criteria:

1. Perform a net worth analysis for the individuals in this specific case.

Part Two:

Short Report

Using the case study and prior knowledge, write a short report to justify why a certain individual has committed fraud. Specifically, you must address the following rubric criteria:

1. Provide evidence that determines the perpetrator of fraud in this case based on your analysis.
2. Describe behavioral patterns that could indicate fraud in this specific case.
3. Explain the importance of financial analysis in a fraud investigation.
4. Explain the importance of behavioral analysis in a fraud investigation.

What to Submit

Excel Spreadsheet

Your submission should include the completed

Module Eight Assignment Net Worth Analysis Spreadsheet

showing the calculations for the net worth analysis. This Excel spreadsheet also provides the financial data needed to complete the net worth analysis.

Short Report

Submit your short report as a 2- to 3-page Microsoft Word document with double spacing, 12-point Times New Roman font, and one-inch margins. Sources should be cited according to APA style.

Supporting Materials

The following resource supports your work on this assignment:

Resource:

Module Eight Assignment Case Study

This document provides the profiles of the two individuals under suspicion of fraud.

Module Eight Assignment Rubric

)

Part One: Net Worth Analysis

Part Two: Perpetrator of Fraud

Does not attempt criterion

Part Two: Behavioral PatternsExceeds proficiency in an exceptionally clear, insightful, or sophisticated manner

Does not attempt criterion15

Part Two: Financial AnalysisExceeds proficiency in an exceptionally clear, insightful, or sophisticated manner

Does not attempt criterion15

Part Two: Behavioral AnalysisExceeds proficiency in an exceptionally clear, insightful, or sophisticated manner

Does not attempt criterion15

Clear Communication

5

Citations and Attributions

5

100%

Criteria	Exemplary (	100%	Proficient (90%)	Needs Improvement (70%)	Not Evident (0%)	Value
Performs a net worth analysis for the individuals in the specific case with no errors	Performs a net worth analysis for the individuals in the specific case with minimal errors	Performs a net worth analysis for the individuals in the specific case with significant errors					Does not attempt criterion	30
			Exceeds proficiency in an exceptionally clear, insightful, or sophisticated manner	Provides evidence that determines the perpetrator of fraud in this case based on their analysis	Shows progress toward proficiency, but with errors or omissions; areas for improvement may include adding details related to providing evidence that determines the perpetrator of fraud in this case based on their analysis				1		5
Describes behavioral patterns that could indicate fraud in this specific case	Shows progress toward proficiency, but with errors or omissions; areas for improvement may include adding details related to describing behavioral patterns that could indicate fraud in this specific case
Explains the importance of financial analysis in a fraud investigation	Shows progress toward proficiency, but with errors or omissions; areas for improvement may include adding details related to explaining the importance of financial analysis in a fraud investigation
Explains the importance of behavioral analysis in a fraud investigation	Shows progress toward proficiency, but with errors or omissions; areas for improvement may include adding details related to explaining the importance of behavioral analysis in a fraud investigation
Exceeds proficiency with an intentional use of language that promotes a thorough understanding	Consistently and effectively communicates in an organized way to a specific audience	Shows progress towards proficiency, but communication is inconsistent or ineffective in a way that negatively impacts understanding	Shows no evidence of consistent, effective, or organized communication
Uses citations for ideas requiring attribution, with few or no minor errors	Uses citations for ideas requiring attribution, with consistent minor errors	Uses citations for ideas requiring attribution, with major errors	Does not use citations for ideas requiring attribution
Total:

ACC 692 Module Eight Assignment Case Study
During your investigation at Resolve Tech Inc., you determined that millions of dollars of venture capital
funding have mysteriously vanished, and suspicion falls on two key figures: Sam, the CEO, and Stacey,
the controller. Let’s look at the profiles of these two individuals to determine if there are behavioral
patterns that could be considered red flags of fraud.
Suspect 1: Sam, the CEO
Sam is a visionary leader who secured recent venture capital funding. He is known for his high-energy
personality, spectacular sales pitches, and lavish lifestyle. He lives in a luxurious condo and drives a very
expensive and fast sports car. He has made a series of personal investments in competitor companies
with technology that is suspiciously similar to Resolve Tech Inc.’s core product.
Recent invoices from a new vendor, hired by Sam to develop a critical software component, show
significant price markups compared to industry standards. His recent business trips, supposedly for
investor meetings, show excessive travel and entertainment costs with minimal documentation of the
meetings themselves. He has recently posted pictures of trips to Turks and Caicos and Italy on social
media.
Suspect 2: Stacey, the Controller
Stacey is a conscientious and reserved accountant known for her expertise and adherence to financial
regulations. She lives modestly and avoids unnecessary attention. She does like to gamble on occasion.
She is the first person to ensure proper documentation is provided and authorization procedures are
followed.
Stacey has been working significant overtime lately. She says this is necessary due to the increased
pressure to finalize financial reports because of the recent influx of venture capital. During this time, she
has also become withdrawn and increasingly irritable when the CEO or CFO asks any questions about
her work.
Security logs show a few unsuccessful attempts to access the company’s financial system from an
unrecognized IP address. These attempts have occurred during Stacey’s overtime hours. During a recent
internal audit, Stacey flagged a few small irregularities in vendor invoices, but she stated these were
likely due to potential data entry errors and haven’t been verified yet.
Personal Financial Information
Sam
End of Last Year
End of Current Year
Assets
Car
Boat
House
$
$
$
35,000.00 $
$
170,000.00 $
80,000.00
40,000.00
300,000.00
Liabilities
Mortgage Balance
Loan on Boat
$
$
80,000.00 $
40,000.00 $
177,000.00
35,000.00
Income
Salary
$
135,000.00 $
150,000.00
Expenses
Mortgage Payments
Boat Payments
Other Living Expenses
$
$
$
6,000.00 $
3,500.00 $
45,000.00 $
15,000.00
3,500.00
55,000.00
Stacey
End of Last Year
End of Current Year
Assets
Car
ATV
House
$
$
$
20,000.00 $
$
220,000.00 $
40,000.00
20,000.00
220,000.00
Liabilities
Mortgage Balance
Loan on Car
$
$
160,000.00 $
$
136,000.00
35,000.00
Income
Salary
$
100,000.00 $
110,000.00
Expenses
Mortgage Payments
Car Payments
Other Living Expenses
$
$
$
24,000.00 $
$
35,000.00 $
24,000.00
9,600.00
40,000.00
Net Worth Analysis
Sam
Total Assets
Total Liabilities
Net Worth
Change in Net Worth
Living Expenses
Total Income
Less Known Income
Unknown Income
End of Last Period
[Insert value.]
[Insert value.]
[Insert value.]
End of Current Period
[Insert value.]
[Insert value.]
[Insert value.]
[Insert value.]
[Insert value.]
[Insert value.]
[Insert value.]
[Insert value.]
End of Last Period
[Insert value.]
[Insert value.]
[Insert value.]
End of Current Period
[Insert value.]
[Insert value.]
[Insert value.]
[Insert value.]
[Insert value.]
[Insert value.]
[Insert value.]
[Insert value.]
Stacey
Total Assets
Total Liabilities
Net Worth
Change in Net Worth
Living Expenses
Total Income
Less Known Income
Unknown Income