anorama Company is a business that has grown rapidly. The Company$$s

accountant, who was hired two years ago, left town suddenly after the

Company$$s manager discovered that a great deal of money had disappeared

over the past $18$ months. An audit disclosed that the accountant had written

and signed several cheques made payable to the accountant$$s brother and

then recorded the cheques as salaries expense. The brother, who cashed the

cheques but had never worked for the company, left town with the

accountant. As a result, the Company incurred an uninsured loss of

$$84,000\mathrm{.}00.$

Evaluate Panorama Company$$s internal control system and identify

violations of the principles of internal control.