Ryan Willis Construction Company has two divisions. The president (Morgan Ryan) manages the roofing division. Ryan delegated authority and responsibility for management of the modular manufacturing division to Don James. The company has a competent accounting staff and a full-time internal auditor. Unlike Ryans procedures, however, James and his secretary handle all bids for manufacturing jobs, purchase all materials without competitive bids, control the physical inventory of materials, contract for shippi

Discuss this situation in terms of internal control weaknesses and identify frauds that could occur.