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Identifying Fraud, Waste, and Abuse in the Supply Chain

Of 3,600 executives and managers polled by Deloitte, only about 40 percent belonged to companies who have detection and prevention programs in place to spot risks and breaches. This is according to Sabine Vollmer in an article for CGMA Magazine. Another number cited from the survey is that a full 50 percent did not know how often their companies monitored third-party suppliers, shippers, and vendors. Analytics has been cited as a solution to these glaring concerns. Deloitte’s Mark Pearson provides seven questions that, when answered, mean corporate risks are being better handled:

  • Have all related parties been identified and factored into the risk-ranking of items to test?
  • How co-operative and responsive is the vendor?
  • Does the support provided validate the transaction?
  • Does the support provided in its entirety provide the ability to evaluate the “weight of the evidence” underlying the transaction?
  • Is there sufficient detail describing the item to justify its being invoiced?
  • Are there any notations (handwritten or otherwise) that may provide useful information about the transaction?
  • If the items invoiced do not have an associated pre-approved rate, is there precedent for the rate change?

You can learn more at Vollmer’s full article: http://www.cgma.org/Magazine/News/Pages/201411110.aspx?TestCookiesEnabled=redirect

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