Describe fraud and its impact; explain the objectives and components of internal control; evaluate internal controls. Scott Smart served as executive director of Downtown Huntsville, an organization created to revitalize Huntsville, Alabama. Over the course of 14 years, Smart embezzled $236,000. How did Smart do it? He did it by depositing subscriber cash receipts in his own bank account, writing Downtown Huntsville checks to himself, and creating phony entities that Downtown Huntsville wrote checks to.
Downtown Huntsville was led by a board of directors comprised of civic leaders. Smart's embezzlement went undetected until Downtown Huntsville couldn't pay its bills.
Give four ways Smart's embezzlement could have been prevented.