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Milford Sprecher SAP Public Services, Inc. Audit Support in SAP.

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Presentation on theme: "Milford Sprecher SAP Public Services, Inc. Audit Support in SAP."— Presentation transcript:

1 Milford Sprecher SAP Public Services, Inc. Audit Support in SAP

2 Auditing Overview mySAP Audit Information System (AIS) Overview Administration of AIS Tools and Data Export Summary and Q&A

3 SAP AG 2003 / Audit Information System, 3 Reasons/Methodology for Financial Audits Financial audits Generally begin with an assessment of internal controls under the assumption that good internal controls reduces the risk of improprieties in the system Are performed after adequate planning and with proper supervision Are performed by obtaining competent evidential matter through inspection, observation, inquiries and confirmations to afford a reasonable basis for an opinion 3 3 Taylor, Donald H. and Glezen, G. William. Auditing: Integrated Concepts and Procedures, Second Edition, New York: John Wiley & Sons, 1982

4 SAP AG 2003 / Audit Information System, 4 Legal Environment (Today) Sarbanes-Oxley Act – 2002: New regulations for auditing firms including more independence requirements Reinforces older case law and acts Places more attention, requirements and responsibilities on management Elevates internal accounting controls to assertion level requiring an opinion from auditor

5 SAP AG 2003 / Audit Information System, 5 How Can Technology Help? System tools to facilitate documentation, assessment and testing of internal control environment Ability to implement continuous automated control techniques to ensure continued compliance with Sarbanes-Oxley requirements (e.g., monitoring of key disclosure controls, electronic sign-offs of control procedure completion, etc.) Ability to provide consistent business process and control practices Automated auditing techniques Control gap analysis and resolution performance management and tracking

6 SAP AG 2003 / Audit Information System, 6 SAP Principles Supporting Audit Requirements Inherent controls are delivered with SAP and do not need to be designed into the system Configurable controls automated controls to be defined at the time of system configuration Security controls user access and segregation of duties controls Reporting controls controls that rely on standard or ad-hoc reports from SAP

7 SAP AG 2003 / Audit Information System, 7 Internal Controls SAP Security Guide Contains examples of best practices for separation of duties System Audit Function in System Audit to make sure there are separation of duties (after the fact) MIC (Management of Internal Controls) Documents processes, risk and internal controls in place Third Party Products SAP Compliance Calculator by Versa Contains segregation of duties testing Sarbanes-Oxley driven

8 SAP AG 2003 / Audit Information System, 8 Continuous Improvement Scoping and Set-Up Document Processes and Controls Sign-Off, Prepare Certification / Internal Control Report Assess Control Design and Remediate Issues Test Operating Effective- ness Attest and Report Management Auditor CEO / CFO Internal Control Manager Org.Unit Manager Process Group Owner Control Owner Evaluator Tester Issue and Remediation Plan Owner Internal and External Auditor SAP MIC – Phases and Roles

9 Auditing Overview mySAP Audit Information System (AIS) Overview Administration of AIS Tools and Data Export Summary and Q&A

10 SAP AG 2003 / Audit Information System, 10 SAP Audit Information System (AIS) AIS is the auditors toolbox within the SAP environment Structured collection and pre-setting of standard reports Suitable for auditors with limited SAP experience Role-based organization Comprehensive functionality for system and business audits Provides monitoring of system inherent and configurable controls Implements numerous reporting controls Business audit structured according to Financial statements Business Processes AIS reporting tree links to multiple types of documentation AIS documentation, SAP Library, IMG documentation, web addresses Data export to external analysis and audit tools online real time or batch processed queries document data, account balances, and financial statement data

11 SAP AG 2003 / Audit Information System, 11 Audit Information System (AIS) Audit planning Work program - System audit - Business audit Export interface Online controls on the SAP database System information Reconciliation B/S, P&L Account balances Documents Data export Account balances Line items Non-SAP EnvironmentmySAP ERP Environment Work paper prep. Report Analysis software ( ACL / IDEA / … ) Reporting software Line items Balances... Accounts Customers Vendors Assets Material Orders Invoices …

12 SAP AG 2003 / Audit Information System, 12 AIS – Motivation and Availability Why should one be interested in this? In an environment of mass transactions, system support for audit is a must. Corporate governance requirements Why use the SAP Audit Information System? Acts as a bridge between auditors and the SAP system Helps to understand SAP terminology and structures Optimized for the SAP system, direct access to critical data What is the effort involved in installing and using AIS? AIS provides data without requiring much system resource. Queries can be run in batch or online. AIS is simple to implement – five to 10 consulting days including training.

13 SAP AG 2003 / Audit Information System, 13 Audit Information System

14 SAP AG 2003 / Audit Information System, 14 The Audit Information System facilitates smoother and better quality audits. It consists of a number of single roles and is a - Collection, - Structure, and - Default setup of SAP standard programs. The AIS is the Toolbox of the auditor in SAP environment. The Audit Information System

15 Auditing Overview mySAP Audit Information System (AIS) Overview Administration of AIS Summary and Q&A Tools and Data Export

16 SAP AG 2003 / Audit Information System, 16 Query Drill-down reporting Informationsystems D A R T A B A P Tools Used for Online and Offline Controls

17 SAP AG 2003 / Audit Information System, 17 SAP - DB Query SAP Query The application SAP Query is used to create lists not already contained in the SAP standard. List Dialog Drill- down Extract (flat file) Online Controls – Query

18 SAP AG 2003 / Audit Information System, 18 Document analysis Documents in general A/P A/R G/L line items Flexible selection for the data retrieval Flexible analysis of the data deemed critical using ALV functions Dubious Documents Document journal (with holiday calendar) Posted on Sunday or holidays? Posted at unusual times?... Account Analysis A/R A/P G/L accounts Offsetting account analysis Even distribution of postings? (in Days/Months/Year) Unusual document origin? (manual, SD, MM, HR,...) Posted in timely manner? (BUDAT – CPUDAT) Documents with the greatest volume (+/-) Critical Clearing Processes A/R Clearing only payment-relevant process? Clearing via reversal? Variance Analysis A/R (Payments received) A/P (Payments sent) Payments out of the norm -Standard condition per master data (days / %) -Condition taken as found in document -Variance (shows payment tendency) Comparison of Terms A/R A/P Terms and conditions, base date, days 1, %, days 2, %, Net values in document - Values in master data = Variance (shows manual changes) Selected Queries Delivered by SAP

19 SAP AG 2003 / Audit Information System, 19 SAP - DB Drill-down Reporting SAP drill-down reporting With drill-down reporting, SAP provides you with an interactive information system to let you evaluate the data collected in your application. List Dialog Drill- down Extract (flat file) Online Controls – Drilldown Reporting

20 SAP AG 2003 / Audit Information System, 20 SAP - DB Informationsystems Component-specific information tools: General ledger Information System Accounts receivable Information System Accounts payable Information System Logistics Information System Repository Information System... List Dialog Drill- down Extract (flat file) Online Controls – Information Systems

21 SAP AG 2003 / Audit Information System, 21 SAP - DB D A R T Data Retention Tool ( D A R T ): Data retention and evaluation of tax-relevant data. Data extraction and storage View query Export function (SAP-Audit-Format) List Dialog Drill- down Extract (flat file) Offline Controls – DART

22 Auditing Overview mySAP Audit Information System (AIS) Overview Administration of AIS Tools and Data Export Summary and Q&A

23 SAP AG 2003 / Audit Information System, 23 7 Key Points to Take Home 1.SAP Audit Information System (AIS) is the auditors toolbox in the SAP environment. 2.It provides a structured, easy-to-learn access to audit-relevant data in the SAP system. 3.AIS is being used by external auditors, internal auditors/financial analysts, tax auditors and data security officers. 4.There are comprehensive online controls for system audit, business audit, and tax audit. 5.AIS supports data export of master data, account balances, and documents to 3rd party audit and analysis tools. 6.AIS can be implemented quickly and with low effort, and easily adjusted to the requirements of the customer. 7.AIS requires few system resources.

24 SAP AG 2003 / Audit Information System, 24 AIS – Benefits AIS is the auditors toolbox within SAP. Online Controls and Data Export Easy to use functionality Comprehensive offering for System audit Business audit Tax audit


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