Question: If an individual s job is purchasing agent and that person
If an individual’s job is purchasing agent, and that person is allowed to purchase from whatever vendor he or she chooses – in other words, the purchasing agent does not have to comply with an approved vendor and price list – how can that person steal from or perpetrate a fraud on his or her employer?
Answer to relevant QuestionsHow are the auditors’ concerns regarding purchase discounts different from those of management? Why?What does it mean when a financial instrument is used to hedge the cost of items that must be purchased for the manufacturing process?What is an imprest petty cash fund, and how does it work?What is involved in most common analytical procedures? What is compared? Why is the impact of poor ICFR related to the disposal of fixed assets not usually important to the financial statement?
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