Jim is the owner and president of ZZZ Company. He and his close friend, Dan, graduated with MBAs. They always dreamed about being successful and making lots of mon They have worked in the same company for years, working their way up to senior management and eventually senior executive roles. ZZZ Company has been a success th entire time that Jim and Dan have worked for the company. Stock prices have increased every year, and revenues have grown by a compounded rate of 20 percent per yea Jim is becoming a little suspicious of the company's results because the earnings per share are always equal to Wall Street's projections. In the past couple of years, Jim has noticed that his friend's personal life has become troubled. Dan has gotten a divorce and is continually struggling financially, even though Jim knows that Dan is making plenty of money to cover his bills. One night, Jim stopped by the office to respond to some e-mails he could not get to during the day. He noticed that Dan was working late as well. Dan was the CEO, and Jim just assumed that he was working late because it was close to the end of the quarter. However, after reviewing the quarter's results, Jim suspicious again because the results are exactly equal to Wall Street's forecasts. Jim decides he needs to begin an investigation into financial reporting practices. Question: What issues must Jim consider in deciding how to investigate the financial results of the company? CHAPTER 8: An excerpt from the Fourth Amendment reads: 'The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched and the persons or things to be seized." Suspecting a Mr. Flammer of running an illegal gambling and loan sharking operation, the FBI obtained a federal search warrant. The FBI entered the residence of Mr. Flammer and searched through various records. Suspecting most of the records were contained on a personal computer, the FBI began attempting to access the computer various files. Unable to access the needed files because of password barriers, the FBI installed a system known as a key logger system (KLS). This system was able to determine the keystrokes made on a computer and thus allowed the FBI to discover the password needed to enter the incriminating files. The discovery led to the gathering of evidence linking Mr. Flammer to the suspected illegal operation Slick) Willy, 45, just got out of jail. As a reformed citizen on parole, Slick decides to go into business for himself. He starts a collections company to help comp debts. The terms of his parole stipulate that he pay restitution payments to the federal government of $400 a month, or 10 percent of his income, whicheve r. As his parole officer, you notice that after a year out of jail, Slick makes some interesting purchases. First, he buys a new Jaguar, which he drives to parole d, he moves into an expensive neighborhood on the north side of town and takes a cruise to Jamaica with his 19-year-old girlfriend. Yet, he has never been la 0 monthly payments to the federal government. After obtaining a subpoena for his bank records, you notice that he has only $1,000 in his account. About th Eceive a call from a man who is making payments to Slick's collection company. He states that Slick is threatening to break his legs and hurt his family if he do company. The man says Slick demands the checks be made out to a woman, not a company. Omplaint convinces you to investigate Mr. Willy and his girlfriend. A search of UCC filings in the county shows that Slick's girlfriend owns three cars costing a to Do, a $360,000 house, and a company called Takit From You. You check her bank account and see that more than $45,000 is moving through the account each ecide to dig through Slick and his girlfriend's trash a few times each month. In these searches, you find evidence that supports the following: three car payme ng $2,000 per month; a $2,600 monthly mortgage payment; a credit card balance of $6,500, with $200 monthly payments; a balance of $13,500 owed to Home ork, with $600 monthly payments; $350 food payments during the past two weeks; and a $3,650 payment to Jamaican Cruise Lines. After searching the girlfrie alk to her neighbors, friends, and co-workers and determine that she and Slick spend between $1,500 and $2,500 a month on miscellaneous items and trips. a bor tells you that Slick just gave his girlfriend a diamond ring that cost $4,500. Slick's girlfriend works as a waitress at a small restaurant and makes only $16,50 Assume that both Slick and his girlfriend's net worth last year were zero.) ion: Use this information to prepare a net worth analysis of Slick's girlfriend. (Ignore interest in your calculations.)