In your first assignment as a graduate forensic accountant in Melbourne, you have been asked to assist with performing an audit of start-up technology company that recently went public and is listed on the Australian Securities Exchange (ASX). Throughout the course of your audit, you have had many conversations with employees throughout the organisation and you feel comfortable in your working relationship with them. During one of your conversations, an organisational employee mentions the seemingly strange behaviour of one of their co-workers named Terry Beasley. They claim that Terry comes into work very early and stays very late. He is commonly stressed and quite irritable lately. Although manyof the companys founders and employees owned stock and have made substantial financial gains from the companys listing on the stock exchange, Terry did not own any stock in thecompany prior to the IPO and hence didnt make much money when the company wentpublic. Nevertheless, Terry has recently purchased a house in the upmarket suburb of Toorak and started driving a Mercedes-Benz.

Required:

Discuss and identify the fraud symptoms in this case. After this, explain whether there is sufficient evidence to determine whether this employee is committing fraud. (8 marks)