Presentation on theme: "Milford Sprecher SAP Public Services, Inc."— Presentation transcript:
1 Milford Sprecher SAP Public Services, Inc. Audit Support in SAPMilford SprecherSAP Public Services, Inc.
2 mySAP Audit Information System (AIS) Overview Auditing OverviewmySAP Audit Information System (AIS) OverviewAdministration of AISTools and Data ExportSummary and Q&AThis is the table of contents.If using the MacroMedia animation then this will be interactive. The pod presenter can easily move between topics depending on the questions or comments posed by the prospect or customer.However, if given the ideal time to present then this is the default flow of content.
3 Reasons/Methodology for Financial Audits Generally begin with an assessment of internal controls under the assumption that good internal controls reduces the risk of improprieties in the systemAre performed after adequate planning and with proper supervisionAre performed by obtaining “competent evidential matter through inspection, observation, inquiries and confirmations to afford a reasonable basis for an opinion”33 Taylor, Donald H. and Glezen, G. William. Auditing: Integrated Concepts and Procedures, Second Edition, New York: John Wiley & Sons, 1982
4 Legal Environment (Today) Sarbanes-Oxley Act – 2002:New regulations for auditing firms including more independence requirementsReinforces older case law and actsPlaces more attention, requirements and responsibilities on managementElevates internal accounting controls to assertion level requiring an opinion from auditor
5 How Can Technology Help? System tools to facilitate documentation, assessment and testing of internal control environmentAbility 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 practicesAutomated auditing techniquesControl gap analysis and resolution performance management and tracking
6 SAP Principles Supporting Audit Requirements Inherent controlsare delivered with SAP and do not need to be designed into the systemConfigurable controlsautomated controls to be defined at the time of system configurationSecurity controlsuser access and segregation of duties controlsReporting controlscontrols that rely on standard or ad-hoc reports from SAP
7 Internal Controls SAP Security Guide Contains examples of best practices for separation of dutiesSystem AuditFunction 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 placeThird Party ProductsSAP Compliance Calculator by VersaContains segregation of duties testingSarbanes-Oxley driven
8 SAP MIC – Phases and Roles Continuous ImprovementManagementAuditorScoping andSet-UpDocument Processes and ControlsAssess Control Design and Remediate IssuesTestOperatingEffective-nessSign-Off,PrepareCertification /Internal ControlReportAttestandReportCEO / CFOInternal Control ManagerOrg.Unit ManagerProcess Group OwnerSection 404 requires an ongoing internal control management process.This slide shows the process steps from documentation, to a design assessment, then a test of operating effectiveness, and finally through to sign-off. This process is ongoing, and repeated each year (or quarter), as represented by the arrows at the top of the slide.If a weakness appears in the control design phase, the documentation may have to be reworked. Then the assessment is carried out a second time. This is represented by the first backward arrow.If a weakness appears in the testing phase, the control’s design may have to be reworked. Then the test will be carried out a second time. This is represented by the second backward arrow.Various roles are involved in the process, from the CFO and external auditors, down to the operative control owners and the people responsible for the remediation of control weaknesses. MIC has a flexible role and task concept to allow your company to create your own roles suited to how you manage internal controls in your organization.Control OwnerEvaluatorTesterIssue and Remediation Plan OwnerInternal and External Auditor
9 mySAP Audit Information System (AIS) Overview Auditing OverviewmySAP Audit Information System (AIS) OverviewAdministration of AISTools and Data ExportSummary and Q&AThis is the table of contents.If using the MacroMedia animation then this will be interactive. The pod presenter can easily move between topics depending on the questions or comments posed by the prospect or customer.However, if given the ideal time to present then this is the default flow of content.
10 SAP Audit Information System (AIS) AIS is the auditors‘ toolbox within the SAP environmentStructured collection and pre-setting of standard reportsSuitable for auditors with limited SAP experienceRole-based organizationComprehensive functionality for system and business auditsProvides monitoring of system inherent and configurable controlsImplements numerous reporting controlsBusiness audit structured according toFinancial statementsBusiness ProcessesAIS reporting tree links to multiple types of documentationAIS documentation, SAP Library, IMG documentation, web addressesData export to external analysis and audit toolsonline real time or batch processed queriesdocument data, account balances, and financial statement dataProvide AIS system audit demo here. Insert SAP Tutor when available.
11 Audit Information System (AIS) Non-SAP EnvironmentmySAP ERP EnvironmentAudit planningWork program - System audit - Business auditA I S...Accounts CustomersVendorsAssets Material OrdersInvoices …Online controls on the SAP databaseSystem informationReconciliationB/S, P&LAccount balancesDocumentsData exportLine itemsAnalysis software( ACL / IDEA / … )Line itemsExport interfaceReporting softwareBalancesWorkpaperprep.ReportThe follwing auditing steps are provided for use with the AIS:Online-Controls in the areas -System audit -Business AuditData export of flat files - Document line items - Account balances
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 requirementsWhy use the SAP Audit Information System?Acts as a bridge between auditors and the SAP systemHelps to understand SAP terminology and structuresOptimized for the SAP system, direct access to critical dataWhat 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.
14 The Audit Information System 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 setupof SAP standard programs.The AIS is the Toolbox of the auditorin SAP environment.
15 mySAP Audit Information System (AIS) Overview Auditing OverviewmySAP Audit Information System (AIS) OverviewAdministration of AISTools and Data ExportSummary and Q&AThis is the table of contents.If using the MacroMedia animation then this will be interactive. The pod presenter can easily move between topics depending on the questions or comments posed by the prospect or customer.However, if given the ideal time to present then this is the default flow of content.
16 Tools Used for Online and Offline Controls QueryA B A PDrill-down reportingA I SInformationsystemsD A R TSAP provides various tools to help you fulfill reporting requirements.AIS uses the tool that provides the best result for the job at hand.
17 Online Controls – Query ListSAP - DBDialogQueryDrill-downSAP QueryThe application SAP Query is used to create lists not already contained in the SAP standard.Extract(flat file)
18 Selected Queries Delivered by SAP Document analysisDocuments in generalA/P A/R G/L line itemsFlexible selection for the data retrievalFlexible analysis of the data deemed critical using ALV functionsDubious DocumentsDocument journal (with holiday calendar)Posted on Sunday or holidays?Posted at unusual times? . . .Account AnalysisA/RA/PG/L accountsOffsetting account analysisEven 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 (+/-)Comparison of TermsA/RA/PTerms and conditions, base date, days 1, %, days 2, %, Net values in document - Values in master data = Variance (shows manual changes)Variance AnalysisA/R (Payments received)A/P (Payments sent)Payments out of the normStandard condition per master data (days / %)Condition taken as found in documentVariance (shows payment tendency)Critical Clearing ProcessesA/RClearing only payment-relevant process?Clearing via reversal?
19 Online Controls – Drilldown Reporting ListSAP - DBDialogDrill-down ReportingDrill-downSAP drill-down reportingWith drill-down reporting, SAP provides you with an interactive information system to let you evaluate the data collected in your application.Extract(flat file)
20 Online Controls – Information Systems ListSAP - DBDialogInformationsystemsDrill-downComponent-specific information tools:General ledger Information SystemAccounts receivable Information SystemAccounts payable Information SystemLogistics Information SystemRepository Information System. . .Extract(flat file)
21 Offline Controls – DART ListSAP - DBDialogD A R TDrill-downData Retention Tool ( D A R T ):Data retention and evaluation oftax-relevant data.Data extraction and storageView queryExport function (SAP-Audit-Format)Extract(flat file)The Data Retention Tool (DART) was developed to support R/3 users with the compliance of legal requirements regarding data storage and reporting.DART makes it possible to regularly extract and store data from active R/3 applications.DART provides tools with which stored data can be flexibly evaluated.
22 mySAP Audit Information System (AIS) Overview Auditing OverviewmySAP Audit Information System (AIS) OverviewAdministration of AISTools and Data ExportSummary and Q&AThis is the table of contents.If using the MacroMedia animation then this will be interactive. The pod presenter can easily move between topics depending on the questions or comments posed by the prospect or customer.However, if given the ideal time to present then this is the default flow of content.
23 7 Key Points to Take HomeSAP Audit Information System (AIS) is the auditor‘s toolbox in the SAP environment.It provides a structured, easy-to-learn access to audit-relevant data in the SAP system.AIS is being used by external auditors, internal auditors/financial analysts, tax auditors and data security officers.There are comprehensive online controls for system audit, business audit, and tax audit.AIS supports data export of master data, account balances, and documents to 3rd party audit and analysis tools.AIS can be implemented quickly and with low effort, and easily adjusted to the requirements of the customer.AIS requires few system resources.
24 AIS – Benefits AIS is the auditor‘s toolbox within SAP. Online Controls and Data ExportEasy to use functionalityComprehensive offering forSystem auditBusiness auditTax audit
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