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 favour 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' consultants 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.

Utilising 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.

Resources Global Professionals is not a public auditing firm.