Reference no: EM131744097

Question: The kickback is a form of fraud often associated with purchasing. Most organizations expect their purchasing agents to select the vendor that provides the best products at the lowest price. To influence the purchasing agent in his or her decision, vendors may grant the agent financial favors (cash, presents, football tickets, and so on). This activity can result in orders being placed with vendors that supply inferior products or charge excessive prices.

Required: Describe the controls that an organization can employ to deal with kickbacks. Classify each control as preventive, detective, or corrective.