Internal control gaps that surface most often before lender reviews

Team discussing internal control findings before a lender review

Lenders and investors in Taiwan increasingly ask for more than last year’s audited numbers. They want evidence that purchase approvals, payroll changes, and inventory movements follow a documented path. An internal control review often finds the same handful of gaps.

Dual approval that exists only on paper

Many companies have dual-signature policies that staff bypass when a director is traveling. Sample testing of payment batches quickly shows whether the second approval is real. Fixing the exception path—temporary delegated authority with a log—matters more than rewriting the policy binder.

Master data changes without review

Vendor bank-detail changes and new employee bank accounts are frequent fraud points. A second-person review of master data edits, even monthly, closes a gap that agreed-upon procedures for lenders often highlight.

Inventory movements without documents

When warehouse transfers lack transfer notes, year-end counts become arguments rather than evidence. Simple sequentially numbered transfer slips, kept for the audit file, prevent that argument from reaching the closing meeting.

Addressing these three areas before a bank review usually costs less than explaining them under time pressure during diligence.

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