EFlic was shattered on April Fool’s Day in 1973 and instantly collapsed. What audit factors allowed the fraud to exist for nearly a decade?

Question

a) Lack of oversight
b) Collusion among executives
c) Weak internal controls
d) all of the above

Answer 1

d) all of the above

All of these factors contributed to the fraud at EF Hutton, allowing it to exist for nearly a decade before it was discovered. Lack of oversight, collusion among executives, and weak internal controls all played a role in the company's downfall.