Here Are Your Articles for Wednesday, February 15, 2017
Is this email not displaying correctly?
View it in your browser .
Website Services Industries Resources About Us Contact Us
Share Save

A Positive Audit: Internal Risk Assessment for Manufacturers

 

In an environment of ever-increasing competition, regulations, and cyberattacks, an internal audit can help shake a company from its lethargy by uncovering new opportunities and addressing risks. If supported by all levels of the organization, the results can offer strategic and tactical insight about how company resources are used and how they might be reallocated to boost performance.

Areas of Risk

Cyber security looms as the latest threat to a business, not only from attacks that can shut down systems, but from data theft ranging from customer records to trade secrets. Audits can unveil weaknesses in the networks of your own company and third-party companies with access to your networks. They may also propose improvements such as additional layers of defense, enhanced detection methods, and better encryption of the data.

Supply chain vulnerability remains a priority for a manufacturer, from vetting raw materials to monitoring the financial stability of suppliers and shippers. Delays, shutdowns, and bankruptcies can impact your manufacturing process and add costs. An internal audit can inform you of potential problems – and prompt you to create contingency plans -- before they happen.

Customer vulnerability also poses a threat. Customer finances may ebb over time, which an internal audit can discover before it surprises your bottom line.

Accounting may be prone to fraudulent activity. Purchase orders, cash receipts, billing, and other financial applications are subject to abuse, which internal audits can ferret out to protect company assets.

Areas of Opportunity

Improved data analysis provides statistics about material wastage that can be curtailed to cut costs and sales trends that can be enhanced to boost revenue.

Better compliance with government financial and safety regulations means fewer problems if – or when – outside auditors arrive. This can avoid penalties, provide a smarter workplace, and enhance your company's reputation.

Inter-department cooperation during an internal audit can lead to greater cooperation after the audit. Manufacturers may benefit from sharing ideas and suggesting process changes that could improve product quality and worker productivity.

Better marketing can result from discoveries during the internal audit -- from enhancing customer relations to preventing social media blunders.

Internal audits can discover the risks and opportunities within manufacturing operations, offering data-specific insight for managers seeking to improve company value, safety, and productivity.

 

 
Share Save

Your Comments

Tim Sinclair
Tim Sinclair
Director
(843) 577-5843
tsinclair@websterrogers.com
40 Calhoun Street, Suite 320
Charleston, SC 29401
Friend Me on Facebook
Follow Me on Twitter
Connect with me on LinkedIn
Saved Articles
Comments and Feedback
Refer A Friend
Your Privacy
Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
Powered by
Copyright © IndustryNewsletters All rights reserved.

This email was sent to: rhowell@websterrogers.com

Mailing address: 40 Calhoun Street, Suite 320, Charleston, SC 29401