Procurement is an area that is highly susceptible to fraud and misconduct in consumer markets companies—losses from which can significantly impact a company’s bottom line. According to a survey conducted by the Association of Certified Fraud Examiners (ACFE), organizations in the US lose nearly seven percent of their annual revenues to fraud each year.
This paper focuses on some of the risks associated with procurement fraud, including how companies can reduce their exposure to losses resulting from the fraud and error that can occur throughout the procurement process, the use of technology to detect losses, and the conducting of supplier audits to recover them. Further, the paper presents the results of a poll conducted by KPMG during a Global KPMG Consumer Markets webcast on Procurement Fraud held in early 2010, wherein participants were asked a series of questions to identify how consumer markets companies are, in practice, preventing and detecting procurement fraud in their organizations.