Bank regulators fined Bank One Corporation $($Now Chase$)$ $$1\mathrm{.}8$ million because they felt the reliability of the bank$$s accounting system caused it to violate regulatory requirements. The financial records of Waste Management Inc. were in such disarray that $10,000$ employees were receiving pay slips that were in error.

In order for these companies to prepare and issue financial statements, their accounting equations must have been in balance at year$-$end. How could these errors or misstatements have occurred?