The supply chain includes the movement of raw materials, components, finished goods, documents, money, services, and data.  The all-inclusive supply chain is not limited to activities between an enterprise and its customers and vendors: it describes interactions between internal suppliers and internal customers as well, regardless of their domestic or global location. Gaps in supply chain links – where controls are not present or lacking – and weak links themselves are areas where opportunists can perpetrate fraud.

Recommending anti-fraud projects to executive management can be problematic because it is difficult to put a price on protecting against something that has not happened or is not visible yet. Without a definitive return-on-investment, determining a suitable budget amount for anti-fraud and risk-reduction projects is an inexact science.  The rest of the enterprise may reject what they perceive to be authoritarian actions of auditors and risk managers to police a "low visibility" problem, especially if operational efficiency or throughput is compromised.  

A better approach is to unite process improvement with risk management by utilizing the same software technologies, operational best-practices, compliance rules, governance guidelines, and performance measures to increase efficiency, accuracy and throughput and also to reduce risk due to fraud by enhancing oversight without inhibiting performance. 

Collaborative efforts between the operations and audit groups, and the understanding of each other's perspectives on the same information, enables greater understanding and mutual participation towards the shared goals of the enterprise.

Learning Objectives
  • Illustrate the enterprise’s true control over its supply chain.
  • List the tried-and-true supply chain technologies that are widely used and can be deployed for fraud detection.
  • Visualize how available supply chain technologies can be used together to create a check-and-balance transaction audit for detecting fraud.
  • Compare your enterprise to industry statistics on audit technologies and fraud detection.

 

 

Last updated/reviewed: August 10, 2023
31 Reviews (115 ratings)

Reviews

5
Member's Profile
Good class! Met my objectives. Sound quality was very inconsistent. At one moment the speaker could be clearly heard and the next moment not. Maybe he moved around and turned away from the microphone. Don't know.

4
Anonymous Author
The course did not really get into details about procedures to perform as an auditor to identify common supply chain fraud schemes. It was more high level on where in the process they might occur.

2
Anonymous Author
More like a synthesis from an ERP or Deloitte brochure. Could condense first 3 modules into one, plus the vendor scorecard module. Vendor fraud is discussed in length on ACFE website.

5
Anonymous Author
It's an excellent preparation for my next job. There was a small typo in The Quiz, 'Scorecard' was spelled 'Corecard'. Throat-clearing by instructor was a bit distracting.

4
Anonymous Author
Great class. Only issue I had with the class is that the volume levels changed frequently. Portions of some sections got quieter and then louder and then quieter again.

3
Member's Profile
Comments about supplier scorecards tailored to retail. Supplier scorecards are a best practice regardless of the industry; broaden scope on scorecards

5
Member's Profile
Very useful description of supply chain role in enterprises. And how fraud can have impact everywhere, potentially endangering company's existence.

4
If you have some specific audit procedures to share, I would be very interested. I do use ACL. Thanks! finn@issecuritysolutions.com

4
Member's Profile
Great course, well covered. I would recommend to anyone who needs to get some understanding about fraud arising in the SCM area.

4
Anonymous Author
The material was relevant and practical. However, the quality of audio and spelling errors in the quizz was a bit dissapointing

3
Member's Profile
Don't feel this helped as an internal auditor. No real examples on procedures for IA to implement in order to test.

3
Anonymous Author
The sound quality (changing volumes, frequently clearing throat) detracted greatly from the learning experience.

4
Member's Profile
Great explanation of inbound and outbound supply chains along with measurement of vendor performance.

5
Anonymous Author
Interesting course. I especially enjoyed the discussion on the inbound and outbound supply chain.

5
Member's Profile
Excellent Course. It gave me another perspective and ideas to implement/ audits to perform.

5
Anonymous Author
"Corecard" is listed as an answer option rather than "Scorecard." The typo can be confusing.

5
Member's Profile
The course was a good review for what I knew...and there were several things that I learned.

5
Member's Profile
This course was outsatnding, The parcticalities and exercises wre useful and tight.

4
Anonymous Author
Course was well detailed and structured. Very informative on the subject matter.

3
Member's Profile
Ok program, doesn't fully address the fraud aspect from a practical standpoint.

4
Anonymous Author
Good comprehensive introductory presentation for Auditing Supply Chain fraud

4
Anonymous Author
Overall interesting course with some interesting thoughts to consider.

5
Anonymous Author
Internal Auditing For Supply Chain Fraud is an excellent course.

4
Anonymous Author
The course was informative but dry, no fault to the instructor.

5
Anonymous Author
Too much time spent discussing the presenter's qualifications

5
Member's Profile
The course was definitely informative as well as eye-opening.

4
Member's Profile
A good introductory course in supply chain management fraud.

5
Anonymous Author
Very good training and presentation! recommended to others.

5
Anonymous Author
Good. Overall in a more generic context for Supply Chain.

5
Anonymous Author
excellent course

4
Anonymous Author
good

Prerequisites
Course Complexity: Intermediate

Prerequisite: Exposure to managing the internal audit function

 

Advanced Preparation: None

 

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
INTRODUCTION AND OVERVIEW
Auditing For Supply Chain Fraud
  Audit's Role and Perspectives 3:17
  Definitions15:03
  Detection and Reduction3:34
  Helpful Technologies24:24
Conclusion
  The Vendor Scorecard and Conclusion11:06
SUPPORTING MATERIALS
  Slides: Auditing For Supply Chain FraudPDF
  Auditing For Supply Chain Fraud Glossary/IndexPDF
REVIEW & TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam