Our Success Stories

Our customer, who operates ships, requested internal control evaluation study, macro-based risk evaluation study, and internal audit service from Teolupus to increase its healthy growth, efficiency, and profitability.

This study, which includes all departments and business processes, is aimed at increasing effective working and institutionalization within the company that will lead to healthy growth, productivity, and profitability, a common corporate risk management approach, and stakeholder satisfaction. With this Project, Teolupus has been selected as the customer’s permanent internal audit service provider. This Project also includes management consultancy work, which includes writing down and updating business processes and procedures.

It is aimed to increase the added value to be provided to corporate rating and independent auditing at the same time the increase in corporate value.

Sample solution suggestions

Internal control evaluation study, macro-based risk evaluation study, and internal audit service provided by Teolupus as an external service provider include the following 5 stages and the loop:

• Current Situation Analysis 
• Internal Control Evaluation Study 
• Macro-Based Risk Assessment 
• Annual Risk-Based Internal Audit Plan 
• Internal Audit

An independent and impartial perspective as an external eye, the internal audit charter put into effect, the contribution of employees to the process with modern internal audit methods, and the increase in the awareness of risk/internal control/internal audit concepts within the organization, the noticeable improvement in operational/financial/administrative processes, the improvement of business processes and updating procedures and writing down those that are not, improvements in organizational structure have provided short- and long-term organizational benefits.

Our customer, who is in the group of companies and holding structure, has decided to carry out this professional experience in other group companies, together with Teolupus as an external service provider.

Our customer, who operates ships, requested internal control evaluation study, macro-based risk evaluation study, and internal audit service from Teolupus in order to increase its healthy growth, efficiency, and profitability.

This study, which includes all departments and business processes, is aimed to increase effective working and institutionalization within the company that will lead to healthy growth, productivity, and profitability, a common corporate risk management approach, and stakeholder satisfaction. With this Project, Teolupus has been selected as the customer’s permanent internal audit service provider. This Project also includes management consultancy work, which includes writing down and updating business processes and procedures.

It is aimed to increase the added value to be provided to corporate rating and independent auditing at the same time the increase in corporate value.

Sample solution suggestions

The evaluation report, which was prepared as a result of the process reviews
conducted at the company’s headquarters and factory as well as meetings with the employees, containing the analysis and recommendations regarding the improvement of all business processes according to corporate risks/internal controls and best practices, was submitted to the company’s board of directors.

Support was provided for the writing of information and quotation request files (RFI and RFP) from ERP manufacturers. According to the scenario created, the ERP software for which an informational presentation was requested, was evaluated with objective and measurable criteria.

As a result of the evaluations of the company stakeholders, -brand-independent and impartial support were provided for the selection of the ERP software. Support was provided for the preparation of the project contract in accordance with the budget, deadline, and technical performance evaluation criteria. Teolupus provided quality assurance service to the company, during the post-purchase installation/design and implementation of the selected ERP software.

Regulation on Measures for the Prevention of Laundering Proceeds of Crime, Financing of Terrorism, and Financing of Weapons of Mass Destruction, issued by MASAK, Regulation on Compliance Programs for the Prevention of Laundering Proceeds of Crime and Financing of Terrorism, issued by MASAK, authorized institutions regulated in the foreign exchange legislation and Borsa İstanbul A.Ş. As of July 1, 2021, all (A) Group Authorized Institutions and Precious Metals Intermediary Institutions are included in the scope of a series of obligations.

As of July 1, 2021, (A) Group Authorized Institutions and precious metal intermediary institutions that are members of the Istanbul stock exchange are obliged to implement responsible supply chain programs, establish an internal control system, and employ internal control and supply chain compliance officers and internal auditors. Within the scope of these obligations, it has become obligatory to obtain independent assurance audit services for the aforementioned supply chain applications.

In this context, in the face of different legal regulations, our customers’ requests for support in compliance with the legislation have developed.

Sample solution suggestions

We have provided and continue to provide support to our customers, by offering Compliance Consultancy, organizing necessary training to comply with new regulations, developing policy documents and procedures, and closely monitoring and directing the process. In this process, we assist our customers in their corporate steps by providing compliance services, developing the internal control system, risk management, internal audit, corporate management, and process improvement, and improving the reporting and organizational and institutional infrastructure.   

In particular, providing consultancy support to our customers in the taxpayer group with our determination, suggestions and sequential solutions for the long-term needs of establishing a strong and sustainable effective internal control system stands out as an important regulatory compliance activity for our company.

Our customer in Ukraine operates in the mining sector. We have remotely audited, analyzed company risks, and evaluated internal controls. Our report in English included recommendations like stock count, procedures, and workflow charts.

Our customer which operates in agriculture sector produces walnuts. The company requested an internal audit service to gauge and manage risks systematically. By evaluating agricultural risks, institutionalization needs, and work processes, risks, we have provided risk-mitigating assurance recommendations. Among consulting recommendations are management information systems, standardizing work processes, investment analysis, and management reporting.

Our customer which provides employee work in/out control system software and hardware has requested an outsource internal audit service. We have reviewed work processes and audited especially sales, trade receivables, and fixed assets to check risks and controls and reported process improvement recommendations.

Teolupus has provided outsourced internal audit services to a company in the tourism sector. Operational, financial, and regulatory processes were reviewed and risk-mitigating recommendations were reported. Travel restrictions and health regulations during the COVID-19 pandemic require compliance and the tourism and hospitality sector are among those that are subject to such decisions. Therefore, internal audits provided assurance referring to precautions to align with regulations and changing customer expectations.

Our customer has decided to do an annual internal audit to check the efficiency and effectiveness of operational processes as part of institutionalization efforts. Existing risks and controls were analyzed and recommendations were reported. Among recommendations are contracted software needs and compliance with changing working models of customers of the COVID-19 pandemic.

As per the internal audit activity decision of the group holding company, Teolupus has audited Import, Export, Procurement, Sales, Accounting, Finance, and Human Resources processes as an outsource service provider. Using international internal audit standards, we have referred to regulations, company procedures, COSO Enterprise Risk Management Framework, COSO Internal Control Framework, and generally accepted accounting principles, and best practices as internal audit criteria.

Considering the existing work processes and sectoral dynamics, the internal audit report has included assurance and consulting recommendations to manage risks and increase corporate value. Aligning contract processes with strategy, insurance, organizational effectiveness, pricing controls, and other critical processes were audited.

Strengthening internal audit in the path of institutionalization

Sample solution suggestions

Our customer that operates in the forest products and chemicals industry has started to establish an internal audit department in parallel with Turquality Works. Teolupus has provided assistance and advisory services to establish internal audit function and corporate training of internal audit team (enterprise risk management, internal control, internal audit, accounting), writing internal audit charter, developing implementation methodology, and internal audit plan.

Content of assistance and advisory services are the following:

1. Corporate training includes:
   • Internal Audit Training
   • COSO Internal Control Framework Training
   • COSO Enterprise Risk Management Training
   • Financial and Cost Accounting and Financial Statements Accounting
2. Internal Audit Charter
3. Internal Audit Strategy
4. Internal Audit Resources
5. Internal Audit Plan
6. Internal Audit Guidance
7. Internal Audit of Procurement of Raw Material (Wood)
8. Internal Audit of Manufacturing Process
9. Internal Audit of Cost Accounting

Our client is currently using self-developed/tailor-made Enterprise Risk Management (ERP) software and other integrated software for barcoding, employee, and manufacturing functions. Teolupus is expected to analyze, assess and evaluate the sufficiency of current software:

• Diagnosing the sufficiency of current software to assess to meet the needs of departmental processes.
• Diagnosing current software to assess sufficiency to meet needs of ERP, barcoding, employee, and manufacturing functions.
• Diagnosing current software sufficiency to assess to meet needs of sectoral functions.

Sample solution suggestions

Our client produces connecting parts, fittings, pressure balancing components, and medical products in the medical and mechanical manufacturing sector and asked us to serve and report  the following tasks;

1. Preparation of sufficiency report of current software based on 3 analysis criteria.
2. List of unmet processes.
3. Documenting functional mapping and solution architecture of current software.
4. Notes of analysis of the current state.
5. Documenting of the coding structure of self-developed/tailor-made software and analysis points about the working principles of the client.

Teolupus was expected to assess and evaluate the efficient use of current ERP, barcoding, employee, and manufacturing functional software for future corporate needs based on strategic planning.

As the diversity of operations has increased, the firm has set a new company specialized in certain products and has split the company in two. In this sense, some departments under the same holding company serve multiple group companies.

As outsource service, internal audit is demanded as a need for the Turquality application process. It was aimed to review and evaluate existing risks and internal controls in business processes of departments, Another purpose was, as the company targets foreign markets which is important for sustainability and become a global organization, it has demanded to outsource internal audit service.

Sample Solution Suggestions

1. Suggestions to empower the organization about strategy and risk management,
2. Suggestions about developing and simplification of organizational chart for processes to be rightly navigable,
3. With business loop logic, suggestions to make relations in finance and accounting sub-departments better with risk and control monitoring purpose,
4. Suggestions to revise company procedures for them to be in line with operational flows,
5. Suggestions to make cash planning and management development,
6. Suggestions to use a uniform chart of accounts correctly,
7. Suggestions to use company insurances and follow up of fixed assets better,
8. Suggestions about potential risks in export,
9. Suggestions to coordinate software used in the company and future software needs,
10. Suggestions about training in risk, internal control, and process development,
11. Suggestions about potential fraud risks (red flags).

Efficiency is below expectations, lack of communication within the company, uncertainties difficulties in the transition to professional management, nonexistence of internal audit function, lack of usage of ERP systems and thus uncertainty in data confidence, non-reconciliation between inventory count of main warehouse and records, a high number of product returns and customer complaints.

Preparation of business processes and mapping are required.

Findings, relating to risks and mitigation solution options were presented to the company.

Sample Solution Recommendations

Mapping of business processes was prepared

A structure to continuously identify and measure risks was submitted

Solutions were provided given to correct mistakes in store controls and inventory counts together with an updated checklist

Solutions were presented to set in order of problems in e-commerce related inventory, logistics, pricing, and sales channels

Production plans between factory and contract manufacturers have done wrongly and this planning was not followed due to governance and managerial problems and this had affected late deliveries to stores. Solution options were presented.

Insufficient quality control problems in production were identified and solutions were submitted

Solutions were provided for warehouse and inventory

Solutions were offered for excess costs arising from wrong transactions in a logistics system

Internal audit guideline was prepared including an internal audit charter, audit committee charter, internal audit organization chart, the job description of the Chief Audit Executive, work papers, report types, etc were prepared. Ultimately, a CAE was recruited and internal audit guidelines are now applied

• • The accounting system generates late information and needs assurance to ensure that the output is correct,
  • Information on cash management and financing structure and management of risks (exchange rate-interest risk, etc.),
  • There are shortcomings in all processes and procedures internal and regulations need to be prepared,
  • The current organizational chart does not respond to current needs in terms of efficiency,
  • Job and job descriptions for executive positions and the qualifications required by this personnel need to be rebuilt,
  • Performance Evaluation and Reward-Appreciation System will be reviewed,

  Sample solution recommendations

  Accurate and timely data, document, and record generation infrastructure of the accounting system were developed and contributed to the accurate and timely preparation of key reports such as balance sheets and income statements.

  The company’s financial statements were analyzed and compared with the best practice in the same sector so that the company’s managers were informed about their financial position.

  All processes in the current application, documented records, and record system were examined. The risks and control deficiencies were reported to the management. Also, all process procedures (including financial and administrative affairs, operations, and production) and sub-process procedures were rewritten and put into process maps. Works have been carried out in accordance with existing ISO 9001 documents,

  The current organizational chart has been revised in terms of efficiency, and a new organizational chart has been implemented in agreement with the management,

  Job and job descriptions are rebuilt for executive positions, and the qualifications required by the appropriate personnel are specified,

  Performance appraisal and Reward-Appreciation System was revised, information and performance indicators were presented to senior management on an ideal system, and training on management issues such as behaviors as per code of conduct, trust, communication, strategy, and leadership were provided.

  Warehouse and Logistics, Production process procedures, and process maps (work flow charts) were prepared.

• • Determine the activities in order to supply the product from the suppliers and meet the customer expectations in a timely manner, minimize the unit costs of stock investments and have the optimum level of stocks.
  • Process inefficiency and high staff turnover,
  • Confusion in the organization,
  • The high error rate in documents such as invoices and packing lists,
  • Inventory tracking system and design shortage,
  • Incorrect and incomplete applications in accounting records and management reporting.

Sample Solution Recommendations

Coordinated work with our computer software and stock counting experts:

Inventory management process procedure, effective inventory management functional organization plan, inventory management process identity card, subprocess maps (order taking, order creation, collection of products into the dispatch area and shipment, sales invoicing and accounting registration, procurement, acceptance of goods, shelf placement, etc.), job descriptions, inventory management internal control criteria, inventory count bylaws, stock management instructions (acceptance of goods, transportation, and storage, stacking, using a forklift and other lifting equipment, loading and dispatching, health and safety, fire, hygiene, etc.) were prepared. Also, training is provided.

Problems such as the examination of profit insufficiency, high costs, seasonal instability, and the high level of personnel turnover due to the problems of corporate governance.

Sample solution suggestions

1. Expense analysis was performed and some of the expenses were found to be high:

• Efficiency suggestions are made by reviewing advertising expenses and comparing cost-contribution,
• Suggesting reduction options the banking commissions,
• Optimization recommendations for personnel expenses during the months when the turnover falls
• Determination of accounting and tax risks, submission of recommendations, and taking advantage of sectoral incentives,
• Developing proposals for reduction of market-oriented procurement costs through supplier evaluations,

2. Producing product, geographical region, customer segment, and savings suggestions for seasonal turnover fluctuations,

3. As a precaution for management problems, recommendations for documenting the existing processes, responsibilities, workflow plans, instructions, procedures, organization plan in a way to increase efficiency