Client Case Studies

These Virtus Assure case studies are a solid validation of the breadth and scope of services that the company provides for our satisfied clients.

Virtus Assure Assists Client to Establish Risk and Control Policies of New Business
Our client diversified into trading of new and used luxury goods in one of its subsidiaries. To support the new subsidiary’s business model, the following key functions were established by management:

• Sales and Procurement
• Cash Management
• Stock Take and Inventory Management
• Safeguarding and Security of Cash and Inventory
• Maintaining Records and Approval for Sales, Procurement, Cash and Inventory Transactions

Virtus Assure facilitated and conducted a risk assessment of the new business subsidiary and key functions with management and identified some of the following business risks:

• Negligent Tort and Infringement of IP Rights
• Anti-Money Laundering and Counter Terrorism Financing
• Counterfeit Currencies
• Transaction Errors and Omissions
• Misappropriation and Discrepancy in Cash and Inventory
• Disruption to Operations

The company’s board of directors and the subsidiary’s management accepted Virtus Assure’s recommendations and implemented the policies and controls to address the financial, operational, compliance and technology risks.

Virtus Assure Identifies Significant Savings through Procurement Analysis
Virtus Assure completed a procurement analysis for the subsidiaries operating in different countries for one of our listed clients to assess that raw materials and components are purchased at the best price for the group.

Our team worked with the management of the subsidiaries in identifying significant raw materials and components commonly used in their manufacturing plants. We examined the volume of usage, specification and unit price for these raw materials and components in each plant.

Through our analysis, we recommended cost-effective vendors and alternative materials and components. Based on our recommendations, the group was able to eventually achieve savings of a few hundred thousand dollars.

Virtus Assure Provides Reviews of Internal Controls Systems for Clients’ Newly acquired Subsidiaries
Several clients engaged Virtus Assure to provide an operational risk and internal control review of their newly-acquired subsidiaries and joint ventures. These reviews encompassed various functions such as sales, procurement, production and quality control, inventory and warehousing, factory facilities, environmental health and safety, information technology systems and data, and human resources.

From these reviews, our team identified risk exposures arising from financial, operational, compliance and information technology control deficiencies. We recommended and assisted management to establish policies and internal controls (authorisation matrix; segregation of duties; cash management; changes in banking signatories; sales and credit policies) to enhance the systems of internal controls.

These operational risk and internal control reviews had provided added assurance to the companies that the risk environment and systems of internal controls in the acquired subsidiaries and joint ventures are adequate and in line with the group’s risk policy.

Virtus Assure Assists Charity Organization to Enhance Governance
Virtus Assure provides pro-bono advisory services for a well-established charity organisation in Singapore with the purpose of strengthening and enhancing their existing code of governance framework as well as to help them achieve Advance Tier status. Our team reviewed and benchmarked the charity organisation’s current governance framework and existing controls against the Code of Governance for Charities and Institutions of a Public Character and prepared the charity to achieve Advance Tier status.

Virtus Assure assessed the charity’s existing system and practices, identifying gaps and improvements to be implemented to achieve Advance Tier status. After the assessment, the charity adopted various governance guidelines to improve their existing framework and implemented the necessary changes to achieve Advance Tier Status.

Virtus Assure Assisted SGX-Listed Companies to Resume Trading
Virtus Assure had been engaged by several SGX-listed companies following the publication of the SGX-mandated special audit reports highlighting lapses in the corporate governance practices and internal controls of these companies. In many of these cases, the trading in the shares of these companies had been suspended until various conditions such as satisfactory corporate governance practices and internal controls were introduced and strengthened to improve the overall corporate governance culture and control environment.

Our approach had been to review the special audit reports, identify the reasons for the lapses in corporate governance practices and the major internal control weaknesses. Our team recommended the necessary corporate governance guidelines and internal controls for timely management corrective actions. These actions help the companies to enhance corporate governance culture and achieve an adequate system of internal controls addressing financial, operational, compliance and technology risks.

Based on our advisory services, we are pleased that these companies had since gained the resumption of the trading of their shares and had continued to engage Virtus Assure as their internal auditors reviewing their enterprise risk management systems, assisting management in their risk assessment and auditing internal controls. Further we offer our opinion on the adequacy and effectiveness of their internal controls addressing the financial, operational and compliance risks of these companies.