UAE Manufacturing Business: Improving Internal Controls Through Risk-Based Internal Audit

Client / Industry:
A UAE-based manufacturing company with procurement, inventory, production, sales, and finance operations.

Challenge

As the business expanded, management became concerned that its existing controls had not kept pace with the increasing complexity of operations.

Key areas of concern included procurement approvals, inventory movements, segregation of duties, payment controls, and access to financial systems.

Management wanted an independent assessment of its internal control environment and a practical roadmap for improvement.

Approach

VIBE designed a risk-based internal audit programme covering the company’s key operational and financial processes.

The review included:

• Procurement and supplier management.
• Purchase approval procedures.
• Inventory controls.
• Payment and expense processes.
• Segregation of duties.
• Financial system access.
• Reconciliation procedures.
• Documentation and approval controls.
• Identification of potential fraud risks.
• Management reporting processes.

Rather than simply reporting weaknesses, VIBE categorised findings according to their risk level and provided practical recommendations for management.

Result

The internal audit provided management with a clearer picture of the company’s control environment and highlighted areas requiring immediate and longer-term attention.

The company was able to:

• Strengthen procurement controls.
• Improve approval procedures.
• Clarify segregation of duties.
• Improve inventory monitoring.
• Review financial system access.
• Establish a prioritised internal control improvement plan.

Key Outcome:
A risk-based internal audit framework that gave management greater visibility over operational and financial risks.

Client Impact:
Management gained an independent view of its internal controls and a practical roadmap for strengthening governance as the business continued to grow.