You receive a call on a potential new matter from Diane Smith, who needs some help trying to figure out what is going on with her company's Inter-Company Receivable.Diane is the CEO of Professional Services, Inc. ("PSI").Diane explains that there has been an unexplained spike in PSI's Inter-company Receivable and she needs your help.Historically, changes in the Inter-Company Receivable occur as the result of Client Advances.Client Advances are expenses that are paid by PSI on behalf of a client that will ultimately be reimbursed by the client.Diane does not believe that any wrongdoing has occurred she just needs a forensic accountant to get behind the numbers.

PSI is a professional services firm with multiple subsidiaries and offices throughout the United States.PSI has 1,200 employees and it is based in Memphis, TN.PSI's Board of Directors has requested a meeting to discuss your potential engagement.

1.You meet with the Board - what will you explain to the Board regarding your proposed work plan?

2.What kind of information do you request?

3.Develop an action plan.

4.If a fraud is occurring, what kind of scheme could it be?

5.What kind of symptoms or financial relationships do you expect to see?