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What weaknesses existed in the audit approach

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Question - An employee for Chicago, Illinois, was fired after city officials discovered that he had used his access to city computers to cancel his $300 water bill. An investigation revealed that he had been doing this for a long time, thereby embezzling a large amount of money from Chicago. He concealed the embezzlement for so long because the amount embezzled always fell within a 2% error factor used by the auditors.

What weaknesses existed in the audit approach? How could the audit plan be improved? What were internal control weaknesses present in the system? Should the auditors have discovered this fraud earlier?

Reference no: EM132982959

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