Use the 2013 COSO IC components to talk about how Bennys bad behavior could have been prevented.

You may refer to any Chapter 6 topics that you consider appropriate, but please note that the 2013 COSO IC components should feature prominently in your answer as support for your conclusion.

You may use any format (such as sentences, bullet points, etc.) to answer this question.

Back in the early 1900s, Arthur worked for a company called James H. Rhodes & Company. Arthur hired his brother Benny to be his Chief Financial Officer (CFO) and placed other members of the family in key management positions. As the company moved into the 1920s, Benny was a model employee; he worked long hours, never took vacations, and made sure that he personally managed all aspects of cash functions. For example, he handled the entire purchasing processfrom issuing purchase orders through the disbursement of cash to pay bills. He also handled the cash side of the revenue process by collecting cash payments, preparing the daily bank deposits, and reconciling the monthly bank statement.

External audits were not yet required for publicly held companies, and the SEC had not yet been formed. Jim, the accountant, was eventually able to determine that Benny had diverted company funds to himself by setting up false vendors and having checks mailed to himself. He also diverted some of the cash payments received from customers and was able to hide it by handling the bank deposits and the reconciliation of the companys bank accounts. Eventually, Jim determined that Benny had embezzled about $500,000 in 1930 dollars (about $46.67 million in todays dollars). Benny disappeared and was never heard from again.