Internal Controls Enhancement for a Family-Owned Business

Intro

Family businesses often operate on trust-based systems that lack formal controls. This case study shows how we introduced strong internal controls to reduce operational risk and improve accountability.

Client Background

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The client manages a multi-branch wholesale distribution business across Muscat, Sohar, and Nizwa. Processes were informal, undocumented, and heavily dependent on verbal approvals.

Challenges

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• Lack of segregation of duties
• Weak inventory and cash controls
• Verbal approvals without documentation
• No audit trails or structured oversight
• Recurring stock discrepancies

Solution

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1. Process Mapping & Risk Assessment

• Mapped purchase-to-pay, sales, inventory, and cash processes
• Identified vulnerability points and inefficiencies

2. Implementation of SOPs & Control Policies

• Introduced documented SOPs for all core functions
• Established approval workflows
• Implemented inventory cycle counts and variance reporting

3. Access & Documentation Controls

• Structured user access levels in ERP/POS systems
• Introduced mandatory documentation for expenses, purchases, and cash flows

4. Staff Training & Oversight

• Trained staff and management on the new controls
• Provided monitoring dashboards

The company now operates with stronger governance, reduced risks, and greater transparency.