The Risk of Misappropriation of Assets and Procurement Fraud Is

question 28

Essay

The risk of misappropriation of assets and procurement fraud is particularly prevalent in the purchasing process.Contrast two different types of frauds commonly perpetrated in the purchases process.

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Definitions:

Mutual Benefit Bailment

An arrangement where both the bailor and bailee receive some benefit from the bailment, such as a loaned item or use of property.

Bailment

The act of temporarily transferring possession but not ownership of personal property to another person under a contract.

Consideration

The value (which can be a promise, an act, or an object) exchanged between parties in a contract.

Voluntary Transfer

The act of willingly transferring ownership or interest in an asset from one party to another without coercion.