Three months after completing the audit of the Mint Corporation, you get an angry phone call from the owner of Mint. The owner yells "You gave us a clean audit, but we just found out that an employee has been embezzling $40,000 a year from us! How could you be so stupid to miss this? What are you actually doing on your audits?"

Required: What are the relevant aspects of the embezzlement and how could have this situation been avoided?