Controls Due Diligence

PURPOSE

Generally, due diligence refers to the care a reasonable person or company should take before entering into an agreement or a transaction with another party. A "Controls Due Diligence" review provides an early warning of any key control weaknesses in the own company or the other company. A "Controls Due Diligence" review is often run in parallel with legal due diligence and technical due diligence reviews. This “Controls” Due Diligence review is an example of how Triple EEE approaches all or part of the Due Diligence Review process.

SCOPE AND PROCESS

While the scope and process of this review will be tailored to your company's specific requirements, it would typically include:

• a review of key business control areas e.g.
  • management systems and its use
  • management information and reporting systems
  • plant and workforce security, occupational health, safety, environment
  • asset integrity and operability
  • final product quality
  • inventory management,
  • procurement
  • financial controls
• a brief (5-10 days) site visit to review Management systems documentation and interview management team members. It also involves a validation of initial insights across the organisation
• a summary report to the management sponsors, highlighting key control weaknesses and proposals for prioritised improvement actions.
• a view on the ability of leaders within the company to implement the proposed actions

BENEFITS

Typical benefits of this service are :

• Reduced risks of disruption of reporting processes, fraud, financial exposure, reputation
• Enhanced controls in a new acquisition or co-operation activity
• Management time and internal audit resources can focus on major control weakness