Performed internal controls and finance systems review for distillery

Performed internal controls and finance systems review for distillery

Stout was engaged by a rapidly growing distillery that sought our expertise to develop and maintain a robust system of internal controls to ensure compliance with GAAP and safeguard its assets. The company needed assistance assessing and documenting its entity level controls, business process controls, and IT general controls. The company also needed an assessment of its finance organizational structure in addition to recommendations for its implementation of Sage X3.

Our deliverables included risk and control matrices for various business processes, process flowcharts for various business processes, a gap assessment with key observations, a future state roadmap, an assessment of existing resources, and a proposed organizational structure with detailed responsibilities and core skills for the finance function.

This engagement was unique due to the client’s vast control activities that were undocumented and inadequately designed coupled with its recent acquisition of another distillery. The company was in the process of integrating a new ERP system (Sage X3) to unify its operations and automate numerous manual tasks. This effort required meaningful responsibility changes within the organization, moving personnel from manual tasks to higher-level analytical roles.

The need for cross-discipline expertise heightened the complexity of this engagement. Stout’s Risk Advisory team collaborated closely with the Accounting & Finance Operations team to assess resources, propose a future state organizational structure, develop a roadmap and prioritized listing of the various recommendations to optimize the company’s finance function, and provide recommendations to enhance the company’s control environment.