Is there fraud in your supply chain?     If so, how would you know?

	Risk Management     Sarbanes-Oxley is more than just about the end result of timely and accurate financial statements.  Sarbanes-Oxley is also about getting there: ensuring that those financial statements are produced when they need to be and are done so accurately.   Fraud in the supply chain can have a direct impact on both the ability to produce financial statements on a timely basis and the accuracy of the information in the financial statements.   One of the more popular Sarbanes-Oxley compliance frameworks - COSO - specifically lists Risk Assessment as one of its 5 key framework aspects.   Essentially, (public) companies must perform a risk assessment.  And without a doubt, the determination and severity of fraud should be one of the risk assessments high on the priority list.   The failure to assess risks is in-and-of-itself a risk, and one not worth taking.   Leaving fraud to itself results in more risk, as small frauds become greater crimes because the perpetrators see that they can get away with larger-scale frauds.  As such, the supply chain is placed in greater risk, as is the company itself.    Private companies looking to go public via IPO would be well-advised to begin their risk assessments early.  Even remaining private, companies can not risk failing to detect and reduce supply chain frauds.	The failure to manage supply chain fraud is a pretty big risk, especially for public companies who have to comply with Sarbanes-Oxley.
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