A council health inspector threatens to close down a restaurant by issuing a fake health…

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A council health inspector threatens to close down a restaurant by issuing a fake health violation

notice if the owner does not make a financial payment to him. If the restaurant owner does not

cooperate, the restaurant cannot be opened for business and the negative publicity will drive

customers away. Faced with the potential economic loss, the owner makes the payment.

Required:

a) What type of fraud is this? (4 marks)

b) What controls can be implemented to prevent or detect the fraud? (6 marks)

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