1. KEY INITIATIVE Internal Control and Technical Accounting
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KEY INITIATIVE Internal Control and Technical Accounting
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2. Overview: Internal control and technical accounting
Top challenges and how Gartner can help
To help companies more efficiently run their controls and compliance functions in this dynamic environment without sacrificing assurance, our research addresses the following common client questions:
How do companies implement accounting standards and stabilize process, controls and disclosures?
Am I paying the right amount of external audit fees?
How can we reduce the overall internal control testing burden?
The topics we cover include:
Internal controls: Offering strategies and benchmarking to balance assurance and compliance through finance team organization, value-added work using automation, rationalization and talent competencies.
Technical accounting: Providing support throughout the life cycle of regulatory and accounting standard issues to help finance leaders summarize impact, develop action plans and understand best practices.

3. Challenges with internal control and technical accounting1 2 3
Designing effective controls without overburdening the company
One-third of companies believe that the benefits of complying with the Sarbanes Oxley Act of 2002 (SOX) do not outweigh the costs.
Compliance hours and costs for SOX have risen 10% or more in the past year for many companies.
Not overpaying external audit fees
Total audit fees increased year over year for 66% of companies.
After inflation, the most common reasons audit firms give for audit fee increases are:
Changes in the client company’s operations or structure
Acquisitions
The incorporation of new accounting standards
Keeping up with implementation of new accounting standards
Nearly 70% of companies still do not have a lease accounting system in place, though they intended to have selected the software by mid-2018.
Gartner analysis of SEC comment letters indicates that companies must clarify disclosures, particularly around areas of significant judgments related to the adoption and pre-adoption of new accounting standards.

4. Questions your peers are asking
Topics
Key client issues
Internal controls
How do companies reduce controls?
How do companies minimize the testing burden?
How do companies build an internal controls program?
Technical accounting
How much information do companies disclose about their revenue recognition transition?
What are the components of a good revenue recognition policy?
How do companies plan to implement and report the new lease accounting standard?
How much are companies paying for their audit this year? How much do they expect to pay next year?

5. Capabilities support each stage of your initiative
Diagnose current state
Compare with peers your external audit fee costs and levels of customer satisfaction with external audit partners using these audit fee and auditor satisfaction benchmarks.
Benchmark against peers your SOX program effectiveness, effort and ownership using this data report.
Assess your disclosures against those issued by early adopters of the new revenue recognition standard using this collection of disclosures.
Evaluate the maturity of your ICFR framework with this maturity assessment.
Develop your plan
Develop your negotiating position with your external auditor by reviewing five negotiation objectives for a better external audit engagement.
Create your own process mapping documents by referencing those in the accounting process map collection.
Design your implementation plan for the lease accounting standard using this Gartner Ignition Guide.
Plan to transition to SOX compliance as a newly public company using this Gartner Ignition Guide.
Execute and drive change
Streamline the number of controls using this Gartner Ignition Guide.
Rationalize controls more regularly, as outlined in this whitepaper.
Optimize controls testing using this Gartner Ignition Guide.
Prevent risks at the accounting process level: Apply recommendations from this financial reporting risks and control deficiencies guide.
Address material weaknesses: Access remediation measures in the financial reporting risks and controls database.

6. Gartner support organized against your timelines
Activity roadmap
Initiative
0-90 days
days
Internal control and technical accounting
Survey Launch: Launch through your service associate the 2019 Audit Fee and Auditor Satisfaction Benchmarks survey to understand if your fees are in line with your peers and compare satisfaction among auditors.
Survey Reporting: Review aggregate survey results with an Executive Advisor to identify differences between audit fee rates across industries, company revenue size and type of auditor (Big-Four or Non-Big Four).
Actionable Guidance: Develop your negotiating position with your external auditor by reviewing five negotiation objectives for a better external audit engagement.
Toolkit: With an Executive Advisor, adapt for your organization proven tools for streamlining controls – included in this Gartner Ignition Guide.
Online Resources: Create your own process mapping documents by referencing those in the accounting process map collection.
Project Support: With an Executive Advisor, adapt for your organization proven tools for optimizing controls testing – included in this Gartner Ignition Guide.
Key Insights: Review with our research team disclosure analysis related to new accounting pronouncements and regulatory changes to see how peer companies are handling disclosures.
Diagnostic: Evaluate the maturity of your ICFR framework with this maturity assessment.

7. Comprehensive support for the finance leader
Finance Leader Effectiveness
Personal Effectiveness
Change Management
Finance Function Management
Finance Strategy and Org Structure
Finance Talent
Cost Optimization and Working Capital
Cost Structure
Working Capital
Indirect Spend Management
Indirect Strategic Sourcing
Indirect Category Management
Financial Data and Analytics
Financial Data Management
Finance Analytics
Metrics and Management Reporting
Budgeting, Planning and Forecasting
Budgeting and Planning
Forecasting
IT Finance
Internal Control and Technical Accounting
Internal Controls
Technical Accounting
Tax and Accounting Processes
Tax Operations
Record to Report
Real Estate Functional Management
Customer Relationship Management
Real Estate Strategy and Org Structure
Shared Services Functional Management
Shared Services Strategy and Structure
Shared Services Talent
Real Estate Optimization
Portfolio Strategy
Workplace Strategy
Shared Services Optimization
Shared Services Performance Management
Customer Relationship Management
Procurement Function Management
Strategy and Org Structure
Talent Management
Strategic Influence
Emerging Trends
Indirect Supplier Relationship Management
Indirect Supplier Performance Management
Indirect Supplier Innovation
Indirect Supplier Risk Management
Financial Strategy and Investor Relations
Capital Structure
Capital Allocation
Investor Relations
Finance Technology Optimization
Digital Technology in Finance
Finance Technology Strategy and Selection
Emerging Technologies and Trends
Cyber Security and Digital Risk Management
Procurement and Strategic Sourcing Applications
Procure-to-Pay Applications
Contract Lifecycle Management
Strategic Sourcing Applications
Driving Cost Optimization Across the Enterprise
Baseline Efficiency and Effectiveness
Cost Optimization Plan Development
Cost Optimization Plan Execution
Communication and Leading Change
Leading the Next Generation Workforce
Key Trends
Emerging Critical Skills
Key Talent Segments
Leadership Style and Structure
Driving Digital Business Transformation for Industry Leadership
Functional Digitization
Digital Business Transformation
Digital Business Strategy and Innovation