Question: A purchasing agent for a large manufacturing firm has responsibility for selecting vendors for the materials and supplies used by the company. The agent directs

A purchasing agent for a large manufacturing firm has responsibility for selecting vendors for the materials and supplies used by the company. The agent directs a disproportionate number of purchase orders to a supply company owned by the agents uncle, which charges above-market prices for its products. The agents employer is not aware of the relationship between the agent and the supplier.

Required

What type of fraud is this?
Controls can be implemented to prevent or detect the fraud?

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