Paul, a bookkeeper employed by Harvey’s Car Lot, forged Harvey’s signature on a number of cheques over the course of a year. The cheques were made payable to fictitious payees. Paul deposited the cheques in his account at Y Bank. He forged the endorsement on some and was able to deposit the rest with no endorsement. Y Bank accepted them all, as did Z Bank when they came to be deducted from the account that Harvey maintains there. Paul was able to conceal his fraudulent transactions in the course of his work. The fraud was not discovered for more than a year, when Harvey hired a new audit firm that detected the fraud in a random check. Meanwhile, Paul has left Harvey’s and left town. Who should bear the loss from Paul’s fraud-Y Bank, Z Bank, or Harvey? What practices should Harvey put in place to prevent future fraud?