QUESTION 2 (25 MARKS) Fraud is a crime that is seldom observed. It is not usually obvious that a crime has been committed. Only fraud symptoms, red flags or indicators are observed. a. Zaharul Hashim owns a small Internet service provider business. Recently, customers have been complaining that they are overcharged and are not receiving timely customer service. Billing rates seem to increase without notice. Five years ago, Zaharul used funding from several different investors in order to start his Internet service. Currently, he has 17 outstanding bills to be paid, all with late charges. Five of the bills include notices stating that lawsuits are pending. Also, he has not paid dividends to investors in two years. Every day, Zaharul drives either his Mercedes-Benz or his new Lexus to work. Before starting the business, Zaharul drove only one car, a Proton Pesona. Zaharul now lives in a palatial home and owns very expensive furniture. Employees constantly ask Zaharul for new equipment, but the "boss" refuses to update the old equipment. Two weeks ago, Zaharul was irate and fired one of his accounting clerks for not depositing some checks on time. Zaharul is known for losing his temper. i. List and discuss any fraud symptoms that are present in this case. [8 marks) Explain briefly why would complaints from customers be a fraud symptom. [4 marks) b. Compare the first-digit frequency in the transactions in the table presented below with Benford's Law and explain the result. Amount (RM) Description Cheque No. 235.64 4401 Payment for TM Bhd. for phone bill. 654.36 4402 An Chong Air-Con for fixing air-condition in December. 4,987.36 Maju Used Car for a van. 4403 339.13 4404 TNB Bhd for electrical bill in November. 475.98 LHDN for taxes. 4405 254.14 4406 Mr. Muscular Ent. for tools set 504.17 4407 Mesra Depot for outdoor carport 171.54 4408 Cahaya IT for help with computer network 326.54 4409 Payment to TM Bhd for phone bill in January Bank Raya for loan payment 477.67 4410 [13 marks)