3. Robert was the chief teller in a large New York bank.

Over a period of three

years, he

embezzled $1.5 million. He took the money by manipulating dormant accounts.

Unfortunately, Robert was both responsible for handling dormant accounts and for
dealing with complaints from customers. When a customer would complain about his
account, Robert was always the one to explain the discrepancy. He usually used the
excuse that “it’s a computer error.” What internal control weaknesses allowed this
fraud
to occur? (10 points)

© In this company, there is no segregation of duties and no independent checks.

® An individual like Robert was given too much trust and supervisory authority by
the bank.

® Should have separate supervisors for dormant accounts and customer complaints