Strengthening Financial Controls for a leading US semiconductor manufacturer
~800
SOPs Reviewed~100
Controls Designed~35
Process Exceptions Identified
The Challenge
Gaps in Control Framework, Testing, and Risk Visibility
As the client scaled outsourced operations, the absence of a structured control environment limited visibility into risks and control effectiveness. Inconsistent governance and a reactive approach to risk further increased exposure to potential process failures.
- Weak control framework across outsourced processes, leading to gaps in oversight
- No defined mechanism to periodically test key controls, impacting assurance and compliance
- Limited risk awareness, with insufficient focus on identifying “what can go wrong” scenarios
Sutherland Solution
Audit-Led Control Design and Testing to Strengthen Governance
Sutherland established a structured, audit-led approach to strengthen governance by embedding risk awareness, defining robust controls, and institutionalizing periodic testing across outsourced processes. In essence, Sutherland:
Setup a Domain Team
- Deployed audit specialists (second line of defense) with deep domain expertise to design risk control matrices and oversee control testing
Performed in-depth SOP Review and Controls Testing
- Reviewed the SOPs across processes to define controls and design RCMs
- Performed walkthrough-based design assessment to ensure adherence to SOPs and Company policies
- Performed test of effectiveness (ToE) to ensure accuracy and reliability of financials
The Outcome
A Stronger, Risk-Aware Financial Control
Sutherland helped establish a robust, risk-aware control framework across outsourced finance operations, strengthening governance and accountability. The engagement identified design gaps in existing processes and introduced best-in-class, benchmarked controls to address them. By defining system-driven configuration controls, the team also unlocked process efficiencies and reduced manual dependencies. In parallel, Sutherland improved risk awareness within the Operations team (first line of defense), helping prevent the recurrence of previously identified errors. Together, these improvements enhanced overall control maturity and significantly improved audit readiness.
