Evidence collection process in a fraud case   Instructions Analize the following information: Indirect methods of income from unknown sources Assume that the following information is derived from reliable sources:     Net Worth Lifestyle Approach Income from Known Sources Description Amount Asset Liability Sources Application Boat 25,000           Boat Loan 20,000           Boat Loan Payments 5,000           Car 40,000           Car Loan 40,000           Car Loan Payments 2,000           Deposit to bank account 400,000           Dividends reported on Tax Retun 5,000           Down Payment Boat 12,000           Down payment Car 7,000           Down Payment Time share 6,000           Down Payment Vacation home 15,000           House 275,000           Home equity loan 35,000           Home Equity Loan Payments 4,000           Income on Tax Return 1,000           Mortgage 200,000             Mortgage payments 3,000           Mutual  funds 20,000           Purchase Mutual Funds 20,000           Time share 50,000           Vacation homes 250,000           Wages on the w-2 and  tax return 75,000           Net Worth               Estimated Net Cash Income             Estimated income from unknown sources

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A:

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Fraud

Fraud in accounting is the planned manipulation of financial documents to make a false appearance of corporate financial health. Moreover, it includes an employee, accountant, or the company itself misleading investors and shareholders.