Poor internal control Consider the situation, in which the purchasing agent of Judd Hardware Wholesalers, Jackson helps his relative in getting the hardware products of the organization. • This is done directly from the manufacturers to the retail store in Cash-on-Delivery basis. This enables his relative to buy the products in Judd’s wholesale prices. • Jackson, being a purchasing agent of the wholesaler should not help his relative in getting the products directly from the manufacturer, as this result in loss to the wholesaler. • He is able to accomplish this because of the wholesaler poor internal control over the purchase order. Since, Jackson is the purchasing agent he has the direct access to the wholesaler’s purchase order format. By using this access, he creates counterfeit purchase order and sent them to the manufactures, thus enabling his relative in buying the products at Judd’s wholesale prices. Hence, the correct option is
