ABSTRACT
Financial statement frauds can include outright fictitious numbers on falsified balance sheets, income statements, profit and lost statements, and so on. Financial statement frauds can be used to secure loans and lines of credit at a level that the organization cannot legitimately apply for based on its financial reality. Frauds relating to regulatory reporting include the falsification of performance reports by public-funded agencies. Public-assistance programs funded by tax dollars are usually required to maintain a certain level of performance which is based on its success rate in helping those in need. Inter-connected chain links mean that a fraud in part of the supply chain can have a ripple effect throughout the whole or a part of the rest of the supply chain. The US Internal Revenue Service (IRS) is the federal government agency whose primary mission is to collect taxes. Supply chain operations should utilize business processes and technologies that allow for series of checks and balances to be implemented.
