The breakdowns in internal controls that allowed this arrangement to prosper over such a long time are manifold. Consolidating so many responsibilities in the hands of even the most trusted of employees is the first bright-scarlet flag. A married couple with entangled duties connected with AP is another red flare. Significant budget variances, on the order of 50,000 of bogus charges per month per department, were overlooked as boom times created a lax atmosphere that tolerated such large discrepancies. Poor inventory controls allowed non-existent shipmeuto be processed and paid for.