An internal audit may be used to assess an organization’s performance or the execution of a process against a number of standards, policies, metrics, or regulations.
- Would you like to know your corporate risks?
- or increasing the effectiveness and efficiency of your controls, writing and updating your procedures?
- Or would you like to increase the competition strength and reputation of your company?
- Are you prepared for fraud risks?
- Do you think that your activities have reached a size beyond your controls?
According to the Institute of Internal Auditors (IIA) works, there is a model under the name of Three Lines of Defence which states defences of companies against threats:
- Management controls and internal controls.
- Financial, controls, security, risk management and compliance.
- Internal audit
Today’s competitive environment requires organizations to be aware of their weaknesses, take precautions, strengthen their structures, train their employees and make them more loyal to their organizations as well as develop risk management, internal control and internal audit capacities.
A more flexible and fast decision making structure helps to competitive advantage.
In this framework, internal audit is a powerful and persistent tool enabling companies to better understand and manage their dynamics.
It is expected that companies which have internal control systems will have less external audit risk and therefore need less time for external audit work and accordingly have external audit cost savings.
Consulting for the Establishment of Internal Audit Department
When you decide to establish the department at your company, as Teolupus with our team of auditors with international certificates (CIA, CCSA, CFSA, CRMA, CGAP, CISA, CFE) examining your company to be structured in compliance with the international Internal Audit Standards.
In the custom-made boutique project for your company, starting from selection of audit manager and employees, preparation of internal audit charter and giving awareness training for management levels which internal audit department will be connected to, there are stages like mapping the required process, stating risks and controls and developing controls and writing procedures.
At the end of this project, we complete the establishment of the Internal Audit Department and make it ready to work on your site.
As per your plan, after establishment for the evaluation of the work of your internal audit department, we also offer services like internal and external evaluations to be done within the framework Quality Assurance and Improvement Program, refreshment, and additional training to be provided and preparation for the internal audit certification exams.
Outsourced or Co-sourced Internal Audit Service
As Teolupus, we can provide internal audit service with our employees who have broad knowledge of international internal audit standards, with regular visits to your company based on annual risk evaluation and internal audit plan prepared together with you. In this case, there is no need for a separate audit department at your company.
While providing you internal audit service, principally we put your company under the microscope and we assess your need, scope and time of the work with you. After this initial work, we make our internal audit program that will enable you to recognize available risks of your company and take precautions, strengthen controls and increase effectiveness and efficiency.
With this specialized audit service that you will receive from us, we aim to enable you to have the control of risks and increase effectiveness, efficiency and as a result; the reputation of your company.
We establish a risk based internal audit department in your organization, recruit highly-skilled employees, train them, provide periodical outsourced or co-sourced internal audit service and apply Quality Assurance and Improvement Program for your Internal Control Department.
All our works are executed as per International Professional Practices Framework of the IIA and international standards by Certified Internal Auditors (CIA) experts.
Fraud Investigation, Assessment and Audit
As per 2018 reporting data of Association of Certified Fraud Examiners-ACFE, companies lose 5% of their turnover due to fraud.
Fraud is a reality of business life even if we try to avoid. Profit pressures on managers, increasing international competition make pressure on companies and this increases fraud risk seven though different controls are taken.
It is in your hand to take systematic and corporate precautions against fraud in your company.
As Teolupus, we review fraud risks, measure control weaknesses, set early notice hot line and information technology policy and all necessary measures needed.
So, We help your company by adding value with our solutions that are in line with your corporate culture.
Our works are executed by Certified Internal Auditor-CIA and Certified Fraud Examiner-CFE experts. Preparations against fraud as well as experienced cases in your organization are reported 360 degree and reviewed periodically.
Establishing, Reviewing and Developing the Efficiency of the Internal Control System
Internal control is one of the primary functions of management. Internal control, defined according to the COSO (Committee of Sponsoring Organizations of the Tread-way Commission) Internal Control Framework, involves a constitution of control frame to determine and eliminate difficulties and risks preventing the fulfilment of business objectives such as profitability, accessing new markets and productivity increase.
By definition, internal control is a process, effected by an entity’s board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance.
As Teolupus we are offering possibilities which provide added value such as development, renewal and replacement of internal controls by examining existing business processes, risks and internal control structure through the eye of an outsider.
We work by referring to COSO Internal Control Framework and provide this service periodically.
E-commerce Audit Services
Worldwide pandemic has caused suspending production and trade substantially.
During quarantine, consumers have changed their ways of shopping and the most popular way has been online shopping / e-commerce. In this transformation, cargo companies have taken an outstanding role in distribution process.
With this dynamic change in purchasing trends, e-commerce companies have been affected and new players have entered this sector. This trend has affected the supply chain as well as the control environment which is an important factor in fraud.
Examples like late arrival, pricing fraud, failure in health measures, operational mistakes and compliance nonconformity are some problems in e-commerce. This may cause manufacturers, customers and actors in this chain may be harmed. And trust to brand and e-commerce firm may be harmed, custumer complaints may increase and loss of financial resources and data may ocur.
Some Fraud Examples in E-commerce:
- Creating fake customers by employees
- Employees to use gift vouchers that are not used by customers
- Malicious acts of customers in the form of return or change of products sold
- Creating fake websites or mobile applications
- Directing customer payments to fake bank accounts through hacking and fishing to get identitiy information
- Mistakes and frauds in inventory management
- Through colliding with suppliers, purchasing team to procure products and services with higher prices or low quality
Laws and regulations about e-commerce firms include enforcements like Security Stamp and ETBIS.
Teolupus provides services customers in managing e-commerce risks, taking precautions, correct designing of processes, compliance to laws and regulations, internal audit, effectiveness and efficiency of operations and prevent frauds.
Cost Optimization Services
When economic crisis hits, demand for the goods and services decline and thus company cash flow balance deteriorates, first actions that senior management thinks of as some priority measures are:
- Close communication with customers for payments of pending receivables
- Postponing payments to suppliers as much as possible
- Postponing financial debts
- Cut down salaries and wages ve layoff
- Cut down general expenses as much as possible
- Applying for state assistance
These measures may produce positive outcomes for balancing cash flow in short term. But, this is not sustainable for a long period. if such measures last longer than necessary, it may cause loss of reputation, loss of customers, loss of good suppliers to competitors etc. So, there need to take different measures in long term.
During crisis, while taking reasonable measures, one of the main actions is long term cost optimization efforts and stopping uneccessary spendings. All functions such as sales, warehouse, production and procurement must be reviewed and evaluated with a fresh look and efficiency of machinery must be scrutinized. For example:
- Reviewing the warehouse processes such as: general freight acceptance, shelfing, inventory system, shipment, packaging, labeling, loading, return, inventory count and maintenance.
- Inventory (raw material, semi-finished, finished, packaging and operational) and transportation optimization, decreasing customer reclamations, eliminating work site idle transportation and handlings etc.
- In collaboration with suppliers, blocking materials that are transported to company that have defects or are missing or in nonstandard forms
- Reviewing idle spaces in office and factory area, Simplification of production and warehousing sites
- Shortening order cycle times, decreasing lead times
- Evaluating observations of sales and marketing teams and marketing researches as well as customer demand and preferences and reflecting these into production process
- To increase the ratio of order/customer proposal
- Lean management principles to apply in office works
Additionally, special care should be given to automation activities. Analytical solutions such as ERP, supply chain and production chain, electronic process management software and customer relationship management (CRM) are a few examples of these activities.
Consequently, decreasing every kind of unnecessary spendings in goods/services production processes including planning and shipment should be targeted. These unnecessary spendings may include production mistakes, overproduction, unnecessary waitings and transportations in production steps etc.). Also, cost optimization which target to effect cash flow and profit positively can be achieved through analysis of customer needs, redesigning/reengineering production steps, reorganizing production site and processes, production technology optimization, increasing employee efficiency, activity based costing, determining key performance indicators (KPI) and analyzing performance targets and variances.
In these works that aim to increase you operational efficiency, through corporate perspective and multidisciplinary holistic look, Teolupus Internal Audit and Risk Management Consulting is at your service.