Single Owner C-Corp: treating owner withdrawals as officer loan repayments?

This is a single owner C-Corp that has not been very diligent with bookkeeping tasks for a few years now. The owner works for the company and has a few salaried employees.

The owner has not drawn a salary since the inception of the company (about 5 years ago). This might get the owner into trouble with the IRS, but the excuse is that the company has not generated enough profits over the years thus the owner is unable to be paid a salary, and all company earnings are reinvested for growth. Is this a tangible excuse?

The owner has been using the business checking account for personal expenses (mortage/car payments, personal shopping, personal bills etc.). In the last tax return filed (Form 1120), the tax accountant treated the personal expenses as repayments of Officer Loan i.e. an Officer Loan account was setup a few years ago with about $100K, and all personal expenses are recorded as an offset to this account. Is this treatment acceptable and can it be considered as normal pratice? Shouldn't the owner withdrawals be treated as distributions?

Thanks for your assistance!