Frank James, a highly competent employee of BrinkwaterSales 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 thepartner of an independent CPA firm in charge of the audit were shocked and dismayedto discover that James had embezzled more than $500,000 over a 10-year period bynot recording billings in the sales journal and subsequently diverting the cash receipts.What major factors permitted the embezzlement to take place?
Frank James, a highly competent employee of BrinkwaterSales 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 thepartner of an independent CPA firm in charge of the audit were shocked and dismayedto discover that James had embezzled more than $500,000 over a 10-year period bynot recording billings in the sales journal and subsequently diverting the cash receipts.What major factors permitted the embezzlement to take place?
Business/Professional Ethics Directors/Executives/Acct
8th Edition
ISBN:9781337485913
Author:BROOKS
Publisher:BROOKS
Chapter5: Corporate Ethical Governance & Accountabililty
Section: Chapter Questions
Problem 17.1EC
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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?
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