Question: A procurement agent for a large metropolitan building authority threatens to blacklist a building contractor if he does not make a financial payment to the

A procurement agent for a large metropolitan building authority threatens to blacklist a building contractor if he does not make a financial payment to the agent. If the contractor does not cooperate, the contractor will be denied future work. Faced with a threat of economic loss, the contractor makes the payment.

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What type of fraud is this and what controls can be implemented to prevent or detect the fraud?

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Frauds of this sort are difficult to detect because of the absence of records Management and ... View full answer

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