A midsize chemical manufacturing company underwent a change in ownership when it was acquired by a private equity firm. The new owners quickly identified a significant gap: The company lacked a formal internal control framework with clearly documented risks and controls, particularly across the inventory, order–to-cash (O2C) and procure–to-pay (P2P) processes. With the next audit cycle rapidly approaching, the company faced the dual challenge of addressing these gaps with limited internal resources and ensuring compliance with SOX requirements.
We deployed a two-person team of industry and audit experts to quickly assess the current state of operations. We made practical adjustments to existing processes to incorporate evidence of control execution. Our team reviewed process documentation, designed and validated new and existing controls through walkthroughs, and developed a comprehensive risk and control matrix aligned with industry best practices. This effort was carried out with an emphasis on right-sizing controls for a PE-backed environment, while ensuring audit readiness.
In a short timeframe, the manufacturer had a functioning internal control framework in place. Key risks were identified and addressed, gaps were closed with newly designed controls, and all elements were mapped to existing documentation. The company entered its next audit cycle with confidence, meeting the expectations of both auditors and PE owners. This engagement laid the groundwork for sustainable compliance and improved financial governance moving forward.