Case 2: A large publicly traded company was defrauded by one of its managerial staff. The individual was authorized to order supplies and approve vendor invoices for payment. For more than a year, the manager routinely added personal items and supplies for his own business to orders made on behalf of his employer. In addition to ordering personal items, the employee changed the delivery address for certain supplies so they were shipped directly to his home. Because the manager was in a position to approve his own purchases, he could get away with these frauds. The scheme cost his employer approximately US$300,000 (Wells and Gill, 2007).

Describe and classify the kind of fraud that occurred. How could this type of fraud be prevented?