Dealership Systems and Controls Review: Are you keeping the profits you make?

By John Gavljak - March 29, 2016

The competitive challenges experienced by automotive retailers in the current economic environment can leave your operations vulnerable to fraud. Critical accounting tasks could ‘fall through the cracks’ if staff are stretched and segregation of duties is compromised. It is normal for dealerships to focus primarily on developing systems to maximise profits, but in the current environment it is also pivotal to review and adjust systems to reduce exposure to fraud and profit leaks.

What makes dealerships vulnerable to fraud?

Dealerships have the following characteristics that increase their potential for fraud:

  • Large reliance on people controls
  • Limited segregation of duties
  • Easily removable assets
  • Numerous departments operating under different management and management styles
  • Large volumes of transactions and source documents

How we can help

At Pitcher Partners, our automotive industry experts have developed questionnaires, retail automotive specific work programs and ‘exception reporting’ techniques, with which, we can assist you to identify: 

  • Weaknesses in internal controls
  • Areas of possible misappropriation or loss
  • Areas of ineffi ciency, duplication or omission
  • Poor quality asset management
  • How to maximise the use of your computer systems

Savvy dealers and financial controllers are taking the time to re-evaluate their internal controls. Frequent checks should be carried out in order to reduce financial exposure and loss and to keep the financial infrastructure running smoothly.

Pitcher Partners can tailor a review to suit your dealership size and franchise. By working closely with your staff, we can assist you in ‘protecting your profits’ and ensuring that you have adequate internal controls in place.

We will provide you with recommendations to minimise the opportunities for fraud to occur or in the event of a fraud, to identify it at the earliest possible opportunity and minimise its impact.

By asking the right questions, dealerships can increase the strength of their internal controls and reduce the risk of losses.


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