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

In dynamic business environments, governance and internal controls are essential for transparency, asset protection, and sustainable growth. However, external audit experience highlights recurring weaknesses in financial systems that impact efficiency, profitability, and compliance.

• Weak Documentation
• Poor Segregation of Duties
• Weak Expense and Revenue Controls
• Weak Technological Controls
• Insufficient Training and Expertise
• Poor Monitoring of Financial Authorizations
• Weak Reconciliation Processes
• Weak Inventory Control

• Higher fraud and financial loss risks.
• Lower investor and customer trust due to weak transparency.
• Operational cost increases from rework and penalties.
• Delayed decision-making due to unavailable or inaccurate data.

• Adopt integrated financial/admin systems supporting digital transformation.
• Improve segregation of duties and keep policies updated.
• Invest in continuous staff training.
• Conduct regular audits and reconciliations.
• Enhance data security and cybersecurity protocols.
• Leverage external audit support to proactively detect weaknesses.

Audit findings show that weaknesses in commercial financial systems stem from poor controls, lack of tech integration, and overlapping responsibilities. Addressing these areas is a strategic investment in the growth, credibility, and resilience of your business.

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