Tom has worked at the Rubber Ducky Manufacturing Company with you for years, having an office next to yours. You genuinely like Tom and have had his family over for barbecues with your family and have become friends. Over the past year and a half, Tom has not been his normal self at work or outside of work. You know something is not right, but can't put your finger on it, and Tom will not open up about what is going on. You have also noticed that Tom, generally a social guy, has been spending more time in his office, is not going out to lunch with the guys, and is evasive when asked questions in meetings.

As you are reviewing reports for Tom's department, you notice that his department expenses are increasing, but that his production is remaining the same. There are several new vendors receiving payments and the backup for these accounting transactions appears to be lacking. As you dig deeper into the past performance of Tom's department, it is clear that something fishy is going on.

If fraud is not occurring, what might be the cause of the new vendors, increased expenses, and lack of an increase in production?