Reference no: EM132462488
Mark is a young business undergraduate at the SUSS, who works part time as a financial adviser at a local financial firm. Mark has been married over two years. His wife is currently taking care of their new born son. Mark is well liked by all those who know him. In fact, those who know Mark would describe him as outgoing, funny and very intelligent.
- At the financial firm, Mark's primary responsibilities are to set up new accounts, make initial loan interviews and work as a teller. While at work, Marks always appears to be working hard and rarely misses work (even for vocations). Other times, Mark is the first one to volunteer to stay late and look over accounts or help clean up.
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Financial Data for Mark
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Month 1
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Month 2
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Month 3
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Assets:
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1992 model car
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$1,000
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2004 model car
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$45,000
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$45,000
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Savings Account
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$3,000
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$6,000
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$7,000
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Checking Account
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$600
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$800
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$500
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Cash Deposit
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2,000
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2,000
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2,000
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Laptop
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2,500
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2,500
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2,500
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Television
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$1,000
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Liabilities:
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Car loan
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$45,000
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$45,000
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Incomes:
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Salary
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$1,000
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$1,000
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$1,000
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Other
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S300
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$300
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$300
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Expenses:
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Rent payments
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$700
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$700
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$700
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Small expenditures
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$130
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$130
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$130
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Car load payments
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$600
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$600
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Other living expenses
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$400
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$700
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$800
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Over the last four months, Mark's supervisor has noticed that Mark has been making some interesting purchases. Four months ago, Mark purchased a big screen television and has frequently invited other colleagues to watch movies at his HDB home. One month ago, Mark bought three branded shirts which he frequently wears to work. Two months ago, Mark traded in his 1992 model car for a 2004 model car. When asked where was getting the money for these purchases, Mark humorously responded, "I guess people are right - when you die, you can't take it all with you. However, it sure was nice they left it with me" This was an allusion to the fact that his wealthy grandmother had recently passed away and left Mark (her favourite grandson) a significant inheritance.
Also, his supervisor has recently heard some of the new customers complaining that their balances are off by $20, $30 and even $50.
Question a) evaluate the fraud symptom in this case.
Question b) Is it possible to identify from the information in this case that Mark is committing fraud at the local financial firm
Question c) What is one reasonable action the supervisor could do if he or she suspected Mark was committing fraud
Question d) If the local financial firm decides to investigate further, calculate Mark's net work.