15. When an IRS agent is questioning a taxpayer, is it advantageous when asked to estimated living expenses to estimate on the high side or low side when exact figures are unavailable? Why?

21. How did an accountant figure bringing Al Capone to justice? In what other ways may forensic accounts fight organized crimes?

40. You prepared a Cash-T of an automobile dealer, as follows:

Cash in Cash Out

Gross receipt $5,000,000Cost of Goods Sold $4,900,000

Sch. C Expenses$95,000

Sch. C Dpr$.10,000

Meals$.1,250

Bureau of Labor

Statistics data$40,000

Cash In$5,000,000Cash Out$5,026,250

41. You prepared a comparative analysis of an automobile dealership. What questions should you ask?

201420152016

Gross Receipt$3,000,000$4,000,000$5,000,000

Cost of Sales$2,800,000$3,850,000$4,900,000

Expenses$ 180,000$140,000$95,000

Gross Profit$20,000$10,000$5,000

Gross Profit %0.67%0.25%0.10%

7.Explain how a college or university might engage in money laundering.

18.Explain the statement: Banks are part of the solution and part of the problem when it comes to money laundering.