With franchise automobile dealerships rising, gross profits diminishing and technology advancing at a rapid rate, the demands on the dealers are at an all-time high. As each day passes, it becomes more difficult for dealers to stay on top of the day-to-day operations. This situation can increase the risk of misappropriation of assets and fraudulent financial reporting.
Therefore, it is imperative that dealerships not only have good management in place, but also have established and implemented a strong set of internal controls. From our extensive experience in the industry, we have seen both the value of strong internal controls and the cost of control deficiencies. Control deficiencies have cost dealerships hundreds of thousands of dollars. In order to prevent control weaknesses from culminating into costly problems, dealers must be proactive.
Most dealerships do not have the research and insight to monitor their controls effectively. Controls are only evaluated when a problem occurs. Many dealerships are large enough to have a full-time internal auditor. However, many dealers feel that it is not cost effective to hire one.
O’Connor & Drew, P.C. has been successfully providing internal audit services for automobile dealerships for more than 30 years. Regardless of the size of the dealership, a proper control environment is essential to the financial health of the business in order to safeguard assets and provide reliable financial information. We provide a variety of internal audit services for automobile dealerships, including, but not limited to, the following:
Check out these additional services exclusively for automobile dealerships:
Please contact Kevin Carnes or Frank O’Brien or Michael Hammond at (617) 471-1120 to discuss how we may help your automobile dealership succeed in these challenging times.