Question: A purchasing manager for Weibo Hardware Berhad has sole discretion in selecting vendors for the parts and supplies sold by the company. The manager directs

A purchasing manager for Weibo Hardware Berhad has sole discretion in selecting vendors

for the parts and supplies sold by the company. The manager directs a disproportionate

number of purchase orders to a supply company owned by the manager's brother in law

which charges above market prices for its products. The manager's relationship with the

vendor is unknown to his employer.

question

(a) Explain the type of fraud in the situation above.

(b) Discuss the control procedures that can be implemented to prevent the fraud.

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