Year 1	Year 2	Year 3	Year 4	Year 5
Assets:
Residence	$ 200,000.00	$ 200,000.00	$ 275,000.00	$ 275,000.00	$ 275,000.00
Automobile	$ 50,000.00	$ 50,000.00	$ 75,000.00	$ 75,000.00	$ 90,000.00
Stocks and Bonds	$ 75,000.00	$ 75,000.00	$ 100,000.00	$ 100,000.00	$ 125,000.00
Cash	$ 15,000.00	$ 16,500.00	$ 18,150.00	$ 19,965.00	$ 21,962.00
Liabilities:
Mortgage Balance	$ 175,000.00	$ 50,000.00	$ 125,000.00	$ 107,000.00	$ 40,000.00
Auto Loan Balance	$ 40,000.00	$ 20,000.00	$ 35,000.00	$ 25,000.00	$ 10,000.00
Income:
Salary		$ 100,000.00	$ 107,000.00	$ 125,000.00	$ 133,750.00
Other		$ 10,000.00	$ 10,000.00	$ 10,000.00	$ 10,000.00
Expenses:
Mortgage Loan Payments		$ 12,000.00	$ 18,000.00	$ 18,000.00	$ 18,000.00
Auto Loan Payments		$ 7,000.00	$ 10,000.00	$ 10,000.00	$ 13,000.00
Other Living Expenses		$ 30,000.00	$ 33,000.00	$ 36,300.00	$ 39,930.00

Using the Net Worth Method, analyze the financial data for potential signs of fraud or embezzlement:

1. The results indicate that this person could be committing some type of fraud? If so, why do you think so?
2. What other factors might you consider to determine whether fraud has been committed, other than the final total income from other sources (if any)?
3. Is this scenario realistic?