Case Studies - Risk & Compliance

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Global 100 Company Internal Audit Finds $10 Million in Potential Recoveries

Challenge
Following an internal audit of agreements with wholesalers, resellers and dealers, a Global 100 company discovered evidence of contractual non-compliance due to a lack of adherence to policies and failure to record documents in their system. The company concluded that financial inefficiencies were leading to a lower-than-expected ROI.

The company launched an initiative to ensure policies and procedures would be followed and relationships with business partners would favor all parties.

How We Helped
We were engaged to help them determine the full extent of the non-compliance. We determined that their contract generation process had inadequate controls and that many agreements had been drafted outside of approved standards. What was originally expected to be 5,000 to 7,000 contracts in scope proved to be more than 25,000. With a clearer picture of the magnitude of the situation, the client increased their reliance on Resources' professionals in order to quantify the full extent of the problem and enable the client to recover the lost revenue.

Results
We worked with the company to institute efficient, but effective controls around contract administration, re-built the contract database and worked with the client to integrate it into the company’s master database system. We identified more than $10 million in funds due the company, most of which the client was able to recover.

Why Resources Global?
Our team leaders had prior experience in this specific area of our client’s industry and had held supervisory and executive positions in the type of area where the breakdown had occurred. We had demonstrated similar results on previous, smaller projects for this client, so they turned to Resources when they had a larger and more complex problem.

Utilizing the breadth of Resources' practice groups, we assembled a large team of multi-disciplined professionals with applicable industry experience. The team consisted of people with backgrounds in auditing, information management, supply chain and contract administration. The ability to bring the varied expertise to the project was a key to its success.

Co-Sourcing Provides Knowledge Transfer and Flexibility for Fortune 100 Financial Services Company

Challenge
After two years working on various compliance issues, the internal staff of a Fortune 100 financial services company returned focus to internal operations, which had been neglected for want of manpower. The Chief Audit Executive wanted to demonstrate to the Audit Committee his staff’s strong understanding of the risks involved in the business and the ability to effectively audit them, but he found it difficult to hire additional people with the required skill set to get the work done in a timely fashion.

How We Helped
Our professionals assisted in executing the internal audit plan, bringing fresh perspectives and new approaches to areas of risk.  We were able to mentor the full time members of the IA department on current practices in both the industry and the internal audit profession.  At multiple locations, we deployed up to eight people, each with the specific skills necessary for the internal audit projects undertaken.  In addition to co-sourcing, we helped the Chief Audit Executive prepare a report to the Audit Committee.

Results
Working as a variable component of the client’s IA department, Resources has between two and eight professionals working inside the client’s business at any given time. This allows the client to scale up or down, depending on scheduled projects. It also ensures that internal audits requiring specific skills have a combination of internal and external staff with the expertise to properly conduct a risk-driven internal audit.

Why Resources Global?
Given the technical nature of this business, industry knowledge and experience were critical. Resources was able to provide professionals who have a deep understanding of the specific areas being audited. With an average 18-years experience, our professionals provided the combined industry and risk management expertise to ensure the client completed their annual internal audit plan more thoroughly than they would have been possible using only internal staff.

Resources Global Professionals is not a certified public accountancy firm.