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Your friend John works or an insurance company John holds a business degree and has been involved in the insurance business for many years. In
Your friend John works or an insurance company John holds a business degree and has been involved in the insurance business for many years. In a recent conversation, John shares some company information with you. He has heard that the internal auditors estimate that the company has lost about $2.5 million over the last year as a result of fraud. Because you are a certified fraud examiner, John asks you how this will affect the companys profitability. John doesnt have access to the companys financial information.
- Compute the additional revenues needed to make up for the lost money, assuming that the company has profit margins of 5, 10, and 15 percent (please show your calculations).
- Give examples of three types of fraud that could affect the insurance company (include the type of fraud and a description of the example of the fraud).
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