A city health inspector threatens to close down a restaurant for issuing a fake health notice if the owner does not make a financial payment to the inspector. If the restaurant owner does not cooperate, he will not be able to open for business and the publicity will drive away his customers permanently . Faced with a threat of economic loss the owner makes the payment.▪ what type of fraud is this and what controls can be implemented to prevent or detect fraud ?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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.A city health inspector threatens to close down a restaurant for issuing a fake health notice if the owner does not make a financial payment to the inspector. If the restaurant owner does not cooperate, he will not be able to open for business and the publicity will drive away his customers permanently . Faced with a threat of economic loss the owner makes the payment.▪
what type of fraud is this and what controls can be implemented to prevent or detect fraud ??
 
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