• Activity on Fraud Scheme A purchasing agent for a large hardware retailer has sole discretion in selecting vendors for the parts and supplies sold by the company. The agent directs a disproportionate by a number of purchase orders to a supply company owned by the agents brother-in-law, which charges above-market prices for its products. The agents relationship with the supplier is unknown to his employer. Required: What type of fraud is this, and what controls can be implemented to prevent or detect the fraud?