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herewego | 1 year ago
Yes, they have to verify. Verification is necessary whether or not the component is sourced through a supplier or in-house. Verification happens after the sourcing step. And yes, you are criminally liable in the supplier case if your supplier commits fraud and you knew about it, as is the implication here.
pylua|1 year ago
Are they legally bound to do the verification themselves ? Seems like it would be more cost efficient to outsource that as well, which would just be prone to fraud.
I did not see it mentioned where they were aware that their suppliers were committing fraud. At these large companies the executives only look at the spreadsheets and take the contracts as fact, regardless if a third party can deliver.
EasyMark|1 year ago