You and your team use PSIs monthly financial statements and Regulated Services bank statements to begin analyzing financial relationships. Your analysis reveals that the increase in the Inter-Company Receivable is not supported by the deposits nor the disbursements from the Regulated Services bank account. A chart of your analysis follows. You share your findings with the Board and discuss next steps.

1. What recommendations do you make to the Board?

2. Do you have sufficient predication that a fraud may be occurring? Why or why not?

3. If fraud is occurring, who could be involved?

4. What additional information would you like to have? Anyone else you would like to talk with?

Comparative Analysis - A/R v. RS Bank Acct 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 2006 2007 2008 2009 2010 A/R Checks cleared-Mo. Aug. -Bank balance-Mo. Avg Comparative Analysis -Inter-Company Receivable v. Regulated Services Bank Account 2010 2006 800,210 753,000 821,000 2007 1,790,375 985,400 892,000 2008 2009 3,662,249 6,366,700 7,728,116 A/R Checks cleared - Mo. Avg. Bank balance - Mo. Avg 1,592,000 1675,000 1352,000 1,325,000 1,495,233 1,010,325 Comparative Analysis - A/R v. RS Bank Acct 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 2006 2007 2008 2009 2010 A/R Checks cleared-Mo. Aug. -Bank balance-Mo. Avg Comparative Analysis -Inter-Company Receivable v. Regulated Services Bank Account 2010 2006 800,210 753,000 821,000 2007 1,790,375 985,400 892,000 2008 2009 3,662,249 6,366,700 7,728,116 A/R Checks cleared - Mo. Avg. Bank balance - Mo. Avg 1,592,000 1675,000 1352,000 1,325,000 1,495,233 1,010,325