Key Weaknesses in Financial Systems of Contracting Activities Based on External Audit Experience

In the contracting sector, financial governance and internal controls are essential for business continuity, asset protection, and investor trust. However, external audit experience repeatedly reveals significant weaknesses in financial systems that undermine operational efficiency, profitability, and risk resilience.

• Weak Cash Flow Management
• Poor Cost Controls
• Lack of Segregation of Duties
• Weak Technological Systems
• Weak Contract and Certificate Management
• Poor Financial Planning and Capital Management
• Weak Controls on Non-Routine Operations

• Implement integrated ERP systems linking finance and operations.
• Strengthen segregation of duties and regularly update policies.
• Provide continuous training on financial and operational standards.
• Conduct frequent contract and certificate reviews for accuracy.
• Establish clear financial plans and monitor receivables/payables.
• Enhance cybersecurity and data protection systems.
• Utilize external audits for early detection and strategic improvement.

External audit insights show that weaknesses in contracting financial systems stem from internal control failures, poor tech integration, and undefined roles. Addressing these is more than compliance—it’s a strategic move to ensure sustainability and competitive strength.

"Investing in robust financial control systems is the cornerstone of sustainable growth and lasting trust among investors and clients."