RELATIONSHIP TO SARBANES-OXLEY
Documentation for Sarbanes-Oxley compliance requires the organization to look at risks, control activities, policies, procedures, etc. across all operations. This investigation becomes an introspective look at how the organization conducts business from the inside-out, the outside-in, and strictly within (such as between departments, divisions, etc.).
If executive management promotes, or does little to prevent, fraud in its dealings with employees, customers, and suppliers, there are likely larger problems to first overcome than Sarbanes-Oxley compliance. However, assuming that this is not the case, the examination of how an organization conducts business for the purposes of Sarbanes-Oxley compliance parallels the analysis for supply chain fraud detection and reduction.
In both cases â€“ Sarbanes-Oxley documentation and supply chain fraud detection and reduction â€“ we must identify the monitoring mechanisms (that will be used to detect supply chain fraud), the control activities (that will be used to prevent supply chain fraud), and the policies and procedures (for reducing or addressing existing supply chain fraud).
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Guest Author: Norman Katz
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