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In: Accounting

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

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?

Solutions

Expert Solution

Feedback is welcomed.

ekkarill92 answered 2 years ago
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