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