Strengthening Procurement Controls Through Targeted Internal Audit

Client Overview

The client is a UAE-based beauty and personal care business operating a premium salon concept, offering a wide range of aesthetic, hair, and wellness services. As the business expanded its service offering and day-to-day operations, procurement activity increased in both value and frequency, covering products, consumables, and third-party supplies. With growth accelerating, management sought to ensure that internal processes, and particularly procurement, were properly controlled, cost-efficient, and aligned with best practices, leading them to engage Swift for a focused internal audit engagement.

 

Challenges

As the business expanded, procurement activity increased in both volume and frequency without a corresponding strengthening of internal controls. Management identified several issues affecting cost control and governance, including:

Weak oversight of the procurement process
Informal approval mechanisms and limited documentation
Lack of effective segregation of duties within procurement activities
Rising purchase values and frequency without sufficient cost justification
Limited visibility over vendor performance and pricing

These challenges increased the risk of inefficiencies and inconsistent purchasing decisions, leading management to engage Swift for a focused internal audit of the procurement process.

Strengthening Procurement Controls Through Targeted Internal Audit - Challenge
 

Swift's Approach

Swift conducted a targeted internal audit focused specifically on the procurement cycle. Our approach included:

On-site visits to gain a full understanding of the end-to-end procurement process

Review of existing procurement policies, workflows, and approval mechanisms

Identification of control gaps and weaknesses against best practices

Clear communication of risks to management in practical, non-technical terms

Development of custom-designed controls tailored to the client’s operational reality

Agreement on a time-bound corrective action plan, including follow-up milestones

Rather than applying generic templates, Swift designed controls that were realistic, implementable, and aligned with the client’s scale of operations.

 
Strengthening Procurement Controls Through Targeted Internal Audit - Swifts Approach

Results & Impact
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Following the implementation of Swift’s recommended controls, the client achieved measurable operational and financial improvements:

  • Procurement spend decreased by approximately 15%
  • Improved visibility and control over purchasing activity led to more disciplined purchasing decisions, reducing ad-hoc and unnecessary spend
  • Consolidation and better planning of purchases strengthened the client’s negotiation position with vendors, enabling more favourable pricing and terms
  • Purchase frequency was rationalised, resulting in improved cash flow management and operational efficiency

These improvements were achieved without disrupting operations, while strengthening governance and accountability.

 
Strengthening Procurement Controls Through Targeted Internal Audit - Added Value

Added Value

Beyond the immediate cost impact, the engagement delivered long-term value:

  • Management developed a stronger understanding of procurement-related risks

  • Internal awareness of control importance increased across the business

  • Controls were embedded proactively rather than reactively

  • The business is now better positioned to scale without repeating past weaknesses

The internal audit also reinforced the role of governance in supporting the owner’s strategic vision, not just compliance.

 

“Our goal was not just to fix the numbers, but to rebuild a reliable system the management can trust every single day. The audit helped them regain control of their operations and make decisions based on accurate, transparent information.”

 

- Arnulfo Relampagos, Assurance & Operations Manager
Author: Swift team, Swift Audit & Advisory

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