A purchasing agent for a large manufacturing firm has responsibility for selecting vendors for the materials...

 

Transcribed Image Text:

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 agent's uncle, which charges above-market prices for its products. The agent's employer is not aware of the relationship between the agent and the supplier. Required 1. What type of fraud is this? 2. Controls can be implemented to prevent or detect the fraud? 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 agent's uncle, which charges above-market prices for its products. The agent's employer is not aware of the relationship between the agent and the supplier. Required 1. What type of fraud is this? 2. Controls can be implemented to prevent or detect the fraud?

Answer rating: 100% (QA)

The impact fraud can wear a company is monumental Not only can it have a major financial impact but reckoning on the sort and severity it may destroy ... View the full answer