(Learning Objectives 1, 2: Learning about fraud; correcting an internal control weakness) Sam Smith served as executive director of Downtown Scanlon, an organization created to revitalize Scanlon. Over the course of 11 years Smith embezzled €297,000. How did Smith do it? He did it by depositing subscriber cash receipts in his own bank account, writing Downtown Scanlon cheques to himself, and creating phony entities that Downtown Scanlon wrote cheques to.

Downtown Scanlon was led by a board of directors comprised of civic leaders. Smith’s embezzlement went undetected until Downtown Scanlon couldn’t pay its bills.

Give four ways Smith’s embezzlement could have been prevented.