Management testing for internal controls for a leading Beauty and Personal Care (BPC) Company
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Case Study
Management testing for internal controls for a leading Beauty and Personal Care (BPC) Company
One of the leading e-commerce platforms offering a wide range of beauty and wellness products, its own cosmetics line, and a dedicated fashion vertical.
The business situation
- The company required assistance in bolstering its internal controls and aiding in the implementation of controls for its subsidiaries during their inaugural year, including:
- Control Environment Assessment: Assessing the control environment and devising a plan to address identified deficiencies
- Subsidiary Integration Support: Identifying controls for recently acquired subsidiaries and proposing implementation measures to prevent deficiencies
- ITGC Testing: Identify all applications affecting critical processes and conduct ITGC testing
- Control Deficiency Remediation: Addressing ineffective controls stemming from insufficient review evidence, a weak control environment, and a delay in the performance of controls
Our team’s role
RCM Evaluation
Evaluating the company’s existing RCMs (business processes and IT applications) to ascertain their current status
Design Gap Identification
Identifying any design deficiencies
Control Testing
Conducting operational effectiveness tests on controls for eight primary business processes and fourteen IT applications
Management Reporting
Preparing management reporting to be presented to the Audit Committee
The value our team added
- By conducting thorough testing and working closely with management, our team identified key opportunities to strengthen control documentation and implement additional controls.
- We developed a targeted mitigation strategy for critical processes and applications, which included enhancing existing RCMs, creating new RCMs for acquired subsidiaries, and seamlessly integrating controls to address risks effectively.
- This proactive approach significantly improved the company’s overall control environment and reduced the likelihood of deficiencies.
Strengthen Internal Controls from Day One
From Control Design to ITGC Testing, Support for Subsidiaries and Rapid Integration
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