Based on the above case, what do you think that the forensic accountant would have assessed to get to know the actual facts about the monies? And how he was able to conclude that the husband and wife must have had access to unidentified sources of income?

Crime And Economy

1. Give short answers for the following questions:

i. In what way do the effects of crime influence economy?

ii. How does crime costs the economy and tax payers?

iii. What is ‘Arson’?

iv. What is money laundering? Point out some activities which could encompass money laundering.

2. What do you understand by the term ‘embezzlement’? Why it is considered a financial crime? (7)

3. What is forgery? And what is the difference between forgery and uttering? (7)

Case Study

As part of an ongoing investigation, the police raided a house and found a large quantity of cash. The occupants of the house claimed that the monies were savings which they had recently withdrawn from their bank accounts. The police suspected that the funds were the proceeds of the crime that they were investigating and made an application to confiscate the funds.

The defendants’ solicitors obtained accountant’s report which concluded that the monies had indeed come from legitimate savings. The forensic accountant was instructed to review that report’s findings. He was able to show that the couple had spent considerably more cash than apparently received and concluded that the husband and wife must have had access to unidentified sources of income.

The couple refused to provide an explanation for the unidentified income so the Court granted
the application to confiscate the monies discovered by the police.

Question

Based on the above case, what do you think that the forensic accountant would have assessed
to get to know the actual facts about the monies? And how he was able to conclude that the
husband and wife must have had access to unidentified sources of income?

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