In one of the case studies in the textbook, Ernie Phillips was a CPA who had fallen on hard times both financially and personally. He eventually got a job as a controller for a friend who had just been named as the receiver for a financial services company. Within a short period of time Phillips began writing checks to himself that had nothing to do with payroll. Control weaknesses that facilitated the commission of this fraud include which of the following?
A) The bank statements were sent directly to Phillips.
B) Phillips had check signing authority.
C) There was no separation of duties between accounts payable and the treasury department.
D) All of the above

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The Answer of In one of the case studies in the textbook, Ernie Phillips was a CPA who had fallen on hard times both financially and personally. He eventually got a job as a controller for a friend who had just been named as the receiver for a financial services company. Within a short period of time Phillips began writing checks to himself that had nothing to do with payroll. Control weaknesses that facilitated the commission of this fraud include which of the following?
A) The bank statements were sent directly to Phillips.
B) Phillips had check signing authority.
C) There was no separation of duties between accounts payable and the treasury department.
D) All of the above

In One of the Case Studies in the Textbook, Ernie