Frank James, a highly competent employee of Brinkwater Sales Corporation, had been responsible for accounting-related matters for two decades. His devotion to the firm and his duties had always been exceptional, and over the years, he had been given increased responsibility.
Both the president of Brinkwater and the partner of an independent CPA firm in charge of the audit were shocked and dismayed to discover that James had embezzled more than $500,000 over a 10-year period by not recording billings in the sales journal and subsequently diverting the cash receipts.
What major factors permitted the embezzlement to take place?
(please also add / specify any noted internal control deficiencies/ weaknesses in any of 5 areas of internal control structure components, in Brinkwater internal control process)
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