Chat with AI
Accounting Information Systems 9th Edition by James Hall
Edition 9ISBN: 978-1133934400Accounting Information Systems 9th Edition by James Hall
Edition 9ISBN: 978-1133934400 Exercise 63
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 number of purchase orders to a supply company owned by the agent's brother in law, which charges above-market prices for its products. The agent's 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?
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 number of purchase orders to a supply company owned by the agent's brother in law, which charges above-market prices for its products. The agent's 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?
Explanation
Verified
Verified
Fraud scheme:
A purchasing agent, who h...
Accounting Information Systems 9th Edition by James Hall
Why don’t you like this exercise?
Other Minimum 8 character and maximum 255 character
Character 255
