Internal audit

Internal audit at the pharmaceutical company’s representative office

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Contents

Business case

The head office of a major international pharmaceutical company engaged Grant Thornton Kazakhstan (hereinafter referred to as the Consultant) to conduct internal audit procedures at the company's representative office in Kazakhstan (hereinafter referred to as the Target Company). The Target Company's representative office had been actively engaged in marketing activities across various regions of Kazakhstan. The primary objective of the project, as envisioned by the Client, was to assess specific areas of operation in terms of compliance with existing policies and procedures. However, our conducted internal audit project revealed a greater number of areas that required immediate action from the Client to enhance internal controls, including addressing instances of document forgery.

 

Services provided

Analysis of internal policies and procedures, evaluating their relevance and applicability;
Examination of primary documentation based on the Client's sample (presence, completeness, compliance with norms and limits according to internal policies and procedures);
Expense analysis: procurement process analysis, assessment of expenditure feasibility and reasonableness.

 

Outcome

The Consultant identified and reported the following issues:

Incomplete coverage of important operational processes by policies/rules, obsolescence of such documents;
Falsification of supporting documents;
Exceeding approved spending limits;
Lack of transparency in the procurement process and non-compliance with approved procedures.

 

Head of the Representative office of the Client:

«The Grant Thornton Advisory team's comprehensive knowledge were invaluable in guiding our decision-making process. They highlighted the bottlenecks in our business processes, indicated the degree of risk for our company, provided strategic recommendations tailored specifically to our organization's goals and requirements».

 

 

Contacts:

 

Igor Ugay,

Advisory Partner,

 

E  igor.ugay@kz.gt.com

Т  +7 727 311 13 40