Reference no: EM132744669

Problem 1: Frank Dizon, a highly competent employee of Breezewater Sales Corporation, had been responsible for accounting related matters for two decades. His devotion to the firm and his duties has always been exceptional, and over the years, he had been given increased responsibility. Both the president of Breezewater and the partner of an independent CPA firm in charge of the audit were shocked and dismayed to discover that Dizon had embezzled more than P5,000,000 over a 10-year period by not recording billings in the sales journal and subsequently diverting the cash receipts. What major factors permitted the defalcation to the place?