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FulcrumWay - Leverage Advanced Controls for EBS R12 to Streamline Record to Report Process
- 1. Leverage Technology: Turn Risk into Opportunity™ Risk and Compliance Financial Reporting Internal Audit Controls Catalog Application Security Advanced Analytics A Leader in Risk Based Enterprise Controls Management Solutions Copyright ©. Fulcrum Information Technology, Inc.Give me a lever long enough and a fulcrum on which to place it, and I shall move the world - Archimedes Financial Close and March Madness - You vs. Audit? Learn how to leverage Advanced Controls for Oracle EBS R12 to streamline your Record to Report process Webinar – March 18th , 2014 Adil Khan Managing Director
- 2. Page 2 Leverage Advanced Controls for Oracle EBS R12 to streamline your Record to Report process Introductions Top Financial Close Challenges Overview of Financial Controls Advanced Controls for Record to Report Case Study Q&A Agenda
- 3. Page 3 Leverage Advanced Controls for Oracle EBS R12 to streamline your Record to Report process Introductions Top Financial Close Challenges Overview of Financial Controls Advanced Controls for Record to Report Case Study Q&A Agenda
- 4. Page 4 A Leader in Risk Based Controls Management™ FulcrumWay: is the #1 End-to-End Provider of Risk Based Enterprise Controls Management Solutions for Oracle EBS, PeopleSoft and JDE customers with over 200 Fortune-500 to Middle Market clients. Since 2003, we have successfully assisted companies across all major industry segments. Expertise: Risk Advisory Services. Advanced Controls Design for Enterprise Applications. Best Practices for Risk Mitigation and Internal Controls Automation. Audit, Compliance, Financial, Enterprise and Operational Risk Assessments. Risk Remediation Services. Packaged Solutions: FulcrumWay is the #1 choice of Oracle customers for Oracle GRC Advanced Controls, GRC Manager, and GRC Intelligence/OBIEE software implementation. Oracle has certified us as the only partner with Accelerators for Oracle GRC. We also provide Managed Services Software Services: Risk Assessment for ERP systems, Control Design and Management Tools, Controls Catalog, Enterprise Risk Manager, Financial Reporting Manager, Audit Manager USA Presence: Privately held Delaware Corporation with US offices in New York City, Dallas and San Francisco International Presence: in Auckland, Chennai, Johannesburg, London, Mexico City FulcrumWay
- 5. Page 5 FulcrumWay ClientsSuccessful Track Record Government Oil and Gas Healthcare Communications Financial Services Transportation Natural ResourcesManufacturing Retail High TechMedia/Entertainment Life Sciences
- 6. Page 6 FulcrumWay™ Insight Thought Leadership Co-Authored GRC Book: First book on GRC for Oracle Applications SROAUG GRC Solution Lab - February 21st – Los Angels: GRC Case Studies and Best Practices Collaborate 14 – GRC Client Appreciation Dinner April 7th, 2014 Las Vegas NEOAUG Spring Conference – June 9th – Worcester, MA -GRC Case Studies and Best Practices IIA/ISACA GRC Conference – August 19th, 2014 - Presentations – Five New Ways to Assess the Risks that Can Turn Results into Rewards Webcasts – Every 3rd Tuesday of the Month – GRC Best Practices, Trends and Expert Insight Oracle Open World – Annual GRC Dinner on September 29th, 2014 - San Francisco, CA LinkedIn –FulcrumWay Risk, Compliance and Audit Software Group YouTube Podcasts – FulcrumWay Instant Insight in 10 min or less Proven Expertise
- 7. Page 7 Leverage Advanced Controls for Oracle EBS R12 to streamline your Record to Report process Introductions Top Financial Close Challenges Overview of Financial Controls Advanced Controls for Record to Report Case Study Q&A Agenda
- 8. Page 8 CFOs struggle to improve management of their financial processesTop Challenges Auditing Standard No. 5 (AS5) directs auditors to focus on those areas that present the highest risk, such as the financial statement close process and controls designed to prevent fraud by management. Personnel Issues 17% Financial Closeand Controls 36% Significant Account Level 40% Other 6% Percentage ofInternal ControlWeaknessesby Category
- 9. Page 9 Enterprise Close Process is Complex Monitor Financial Close Controls Sub Ledger Close General Ledger Close Data Assurance Consolidation Internal Reporting External Reporting Filling Close PO Close Project Billing and Costing Run post process for PO, Projects, etc Close AR sub ledger Close AP sub ledger Close Inventory sub ledger Close HCM sub ledger Close Assets sub ledger Run revaluation/re-measurement Run GL post process for AP,AR, FA, etc. Reconcile sub ledgers to GL Reconcile Bank Accounts Reconcile all accounts Approve adjustments Clear suspense accounts Post accruals Run allocations Gather non actuals data from reporting (lease, credit line, headcount, plan, etc) Gather and validate complete data sets to support all financial reporting needs (i.e. Legal Entity, Segments, Management, Tax, Sustainability Metrics, Tax, etc Run summary allocations Run consolidation to summary ledgers Make Topside Entries Run reports for FASB Run reports for KPI’s Rune reports for FX Run reports for Retained Earnings Run period-end management reports Review reports for business performance and realignment Generate external reports Compile Disclosure Items Gather other financial information Deliver XBRL/Edgar filings to the SEC Deliver statutory filings such Tax Top Challenges
- 10. Page 10 Enterprise Close Process is Complex Monitor Financial Close Controls Sub Ledger Close General Ledger Close Data Assurance Consolidation Internal Reporting External Reporting Filling Close PO Close Project Billing and Costing Run post process for PO, Projects, etc Close AR sub ledger Close AP sub ledger Close Inventory sub ledger Close HCM sub ledger Close Assets sub ledger Run revaluation/re-measurement Run GL post process for AP,AR, FA, etc. Reconcile sub ledgers to GL Reconcile Bank Accounts Reconcile all accounts Approve adjustments Clear suspense accounts Post accruals Run allocations Gather non actuals data from reporting (lease, credit line, headcount, plan, etc) Gather and validate complete data sets to support all financial reporting needs (i.e. Legal Entity, Segments, Management, Tax, Sustainability Metrics, Tax, etc Run summary allocations Run consolidation to summary ledgers Make Topside Entries Run reports for FASB Run reports for KPI’s Rune reports for FX Run reports for Retained Earnings Run period-end management reports Review reports for business performance and realignment Generate external reports Compile Disclosure Items Gather other financial information Deliver XBRL/Edgar filings to the SEC Deliver statutory filings such Tax Top Challenges Numerous ERP modules involved (INV,OM, AP,AR,GL) Numerous interdependencies between applications and departments Interdependent processes that must run in parallel Large volume of incomplete transactions in interface tables must be manually resolved Large volume of incomplete transactions in interface tables must be manually resolved Lack of issue identification and remediation Coordination of key personnel Simultaneous audit of the close, during the close SOX certifications should precede financial reporting Compressed reporting period Penalties for late reporting Steps must be completed in the right order Difficult to see bottlenecks within critical Lack of time for internal due diligence
- 11. Reconciliation requires clear communication and effective collaboration Account Reconciliation Executives Administrators Auditors Preparers & Reviewers Top Challenges
- 12. Reconciliation requires clear communication and effective collaboration Account Reconciliation Executives Administrators Auditors Preparers & Reviewers Top Challenges Lack of insight – Are there any surprises during account reconciliation? Lack of real time status. Too much time for audit & review Missing work papers on key account balances Disconnected control testing – redundant efforts No standard definition for “reconciled”. Account Reconciliation not based on Risks such as potential for fraud or misstatement, turnover, account history, materiality, volume of transactions, significant judgment, need for regular manual posting or adjustments, etc Delinquent reconciliations – No Action plan for Account owner to remediate delinquent reconciliations
- 13. Leverage Advanced Controls for Oracle EBS R12 to streamline your Record to Report process Introductions Top Financial Close Challenges Overview of Financial Controls Advanced Controls for Record to Report Case Study Q&A Agenda
- 14. Oracle EBS 11i vs R12 Close ProcessFinancial Controls
- 15. Oracle EBS R12 Sub-ledger Transaction Controls Financial Controls
- 16. Oracle EBS R12 Period-End Task Controls Financial Controls
- 17. Oracle EBS R12 Import JournalsFinancial Controls
- 18. Oracle EBS R12 Concurrent Request: Create Accounting Financial Controls
- 19. Oracle EBS R12 Concurrent Request: Period-End – AP Trial Balance Financial Controls
- 20. Month End ReportsFinancial Controls
- 21. Oracle EBS R12 Account Reconciliation Financial Controls
- 22. Leverage Advanced Controls for Oracle EBS R12 to streamline your Record to Report process Introductions Top Financial Close Challenges Overview of Financial Controls Advanced Controls for Record to Report Case Study Q&A Agenda
- 23. Standard + Advanced Controls User Roles 3-Way Match Track Payments Sentiment Analysis Split Purchase Orders Hide Displays of Sensitive Data Duplicate Payments Transaction Threshold Amounts Duplicate Vendors Fine- grained User Access Configuration Snapshots & Audit Trial Transaction Pattern Analysis Fuzzy Logic, ‘simil ar values’ Advanced Controls Standard Controls Approval Hierarchies Track Discounts Advanced Controls
- 24. Enterprise Controls PlatformAdvanced Controls Enterprise Risk & Controls Foundation Dashboards, Reports and Alerts NotificationsWorklists Email PerspectivesSearch Risk, Controls & Compliance Management ReviewsDocumentation Assessments RemediationSurveys Continuous Controls & Risk Monitoring SetupsAccess Master Data Audit TestsTransactions User Authored ControlsData Connectors Fraud & Error Patterns RoleBasedAccessSecurity WebServices&APIs Custom or Legacy Applications Risk & Controls Repository Assess and Certify Detect Policy Violations All Users & Applications 100% of Transactions All Processes ̶ Procure to Pay ̶ Order to Cash ̶ Financial Reporting ̶ User Access Manage by Exception Optimize Processes
- 25. Flow Controls generate close tasks and prevent close errors Advanced Controls
- 26. Flow Controls generate close tasks and prevent close errors Advanced Controls
- 27. Transaction Controls Detect unusual Journal Entries Advanced Controls
- 28. Transaction Controls Detect unusual Journal Entries Advanced Controls
- 29. Monitor Key Configurations in ERP Advanced Controls Query a change tracker to identify changes across multiple instances. Select multiple applications to monitor Query requires Change Tracking Transfer program to run before any data can be collected. (This program transfers change tracking data from the ERP instances to CCG.)
- 30. Monitor Key Configurations in ERP Advanced Controls
- 31. Leverage Advanced Controls for Oracle EBS R12 to streamline your Record to Report process Introductions Top Financial Close Challenges Overview of Financial Controls Advanced Controls for Record to Report Case Study Q&A Agenda
- 32. Wall Street Firm Maintains Control during Financial Crises Our Client Leading brokerage services firm specializing in credit derivative products, including single-entity credit default swaps, emerging market credit default swaps, credit indices, options on single-entity credit default swaps, options on credit indices, and credit index. The company was founded in 1987 and is headquartered in New York, New York with business primarily in North America, Europe, and Asia-Pacific. Challenges Reduce costs related to audit and controls assessments Reduce risk associated with the current state highly manual, fragmented process Need Enterprise-wide visibility into the Risk and Compliance processes Leverage investments in technology to provide a foundation for Enterprise Risk Management Solutions GRC, ERM and Fin Governance Analytics Oracle GRC Manager Successes Improved management visibility into financial close controls by providing real time reporting on GL close tasks performance by financial managers across the regions. Reduced financial misstatement risk by replacing manual, spreadsheet based error-prone process with automated checklist Delivered Enterprise Risk Management framework by enabling management and process owners to set key risk objectives and monitor risk indicators using simple dashboards. Provided Risk Assessment Analytics to improve audit planning. Case Study
- 33. Case Study Record to Report Process Flow
- 34. Case Study Record to Report Process Flow
- 35. Define Enterprise Structure Review Task Assignments Complete Tasks Approve Tasks Submit Schedules Complete Close/ Reporting Schedules Setup/Open Templates/ Tasks Update/ Initiate Tasks Review Tasks Close Region Task Owner/Reviewer/ApproverGlobal Administrator Regional Financial Director Corporate Controller Release Tasks Record to Report Process FlowCase Study
- 36. Case Study Task Management Dashboard
- 37. Case Study Results and Benefits
- 38. Case Study Advanced Controls with Hyperion
- 39. Case Study Advanced Controls with Hyperion
- 40. Case Study Advanced Controls with Hyperion
- 41. Leverage Advanced Controls for Oracle EBS R12 to streamline your Record to Report process Introductions Top Financial Close Challenges Overview of Financial Controls Advanced Controls for Record to Report Case Study Q&A Agenda
- 42. Leader in Risk Based Enterprise ControlsQ & A One-on-One with ExpertsDownload DataProbe Follow FulcrumWay on LinkedIn for ERP Risk and Controls
Editor's Notes
- ARM has features for several user groups:Administrators manage the process. They are responsible for system setup and configuration. They make sure that all accounts have been assigned and that the work is being done. Preparers & Reviewers do the work. They justify account balances, attach appropriate supporting documentation, and provide evidence of review and approval.Executives monitor the process. They watch out for risk conditions, monitor policy compliance, and champion process improvement initiatives.Auditors validate the process. They select samples of reconciliations and test compliance.
- ARM has features for several user groups:Administrators manage the process. They are responsible for system setup and configuration. They make sure that all accounts have been assigned and that the work is being done. Preparers & Reviewers do the work. They justify account balances, attach appropriate supporting documentation, and provide evidence of review and approval.Executives monitor the process. They watch out for risk conditions, monitor policy compliance, and champion process improvement initiatives.Auditors validate the process. They select samples of reconciliations and test compliance.
- ARM has features for several user groups:Administrators manage the process. They are responsible for system setup and configuration. They make sure that all accounts have been assigned and that the work is being done. Preparers & Reviewers do the work. They justify account balances, attach appropriate supporting documentation, and provide evidence of review and approval.Executives monitor the process. They watch out for risk conditions, monitor policy compliance, and champion process improvement initiatives.Auditors validate the process. They select samples of reconciliations and test compliance.
- ARM has features for several user groups:Administrators manage the process. They are responsible for system setup and configuration. They make sure that all accounts have been assigned and that the work is being done. Preparers & Reviewers do the work. They justify account balances, attach appropriate supporting documentation, and provide evidence of review and approval.Executives monitor the process. They watch out for risk conditions, monitor policy compliance, and champion process improvement initiatives.Auditors validate the process. They select samples of reconciliations and test compliance.
- ARM has features for several user groups:Administrators manage the process. They are responsible for system setup and configuration. They make sure that all accounts have been assigned and that the work is being done. Preparers & Reviewers do the work. They justify account balances, attach appropriate supporting documentation, and provide evidence of review and approval.Executives monitor the process. They watch out for risk conditions, monitor policy compliance, and champion process improvement initiatives.Auditors validate the process. They select samples of reconciliations and test compliance.
- ARM has features for several user groups:Administrators manage the process. They are responsible for system setup and configuration. They make sure that all accounts have been assigned and that the work is being done. Preparers & Reviewers do the work. They justify account balances, attach appropriate supporting documentation, and provide evidence of review and approval.Executives monitor the process. They watch out for risk conditions, monitor policy compliance, and champion process improvement initiatives.Auditors validate the process. They select samples of reconciliations and test compliance.
- ARM has features for several user groups:Administrators manage the process. They are responsible for system setup and configuration. They make sure that all accounts have been assigned and that the work is being done. Preparers & Reviewers do the work. They justify account balances, attach appropriate supporting documentation, and provide evidence of review and approval.Executives monitor the process. They watch out for risk conditions, monitor policy compliance, and champion process improvement initiatives.Auditors validate the process. They select samples of reconciliations and test compliance.
- ARM has features for several user groups:Administrators manage the process. They are responsible for system setup and configuration. They make sure that all accounts have been assigned and that the work is being done. Preparers & Reviewers do the work. They justify account balances, attach appropriate supporting documentation, and provide evidence of review and approval.Executives monitor the process. They watch out for risk conditions, monitor policy compliance, and champion process improvement initiatives.Auditors validate the process. They select samples of reconciliations and test compliance.
- ARM has features for several user groups:Administrators manage the process. They are responsible for system setup and configuration. They make sure that all accounts have been assigned and that the work is being done. Preparers & Reviewers do the work. They justify account balances, attach appropriate supporting documentation, and provide evidence of review and approval.Executives monitor the process. They watch out for risk conditions, monitor policy compliance, and champion process improvement initiatives.Auditors validate the process. They select samples of reconciliations and test compliance.
- ARM has features for several user groups:Administrators manage the process. They are responsible for system setup and configuration. They make sure that all accounts have been assigned and that the work is being done. Preparers & Reviewers do the work. They justify account balances, attach appropriate supporting documentation, and provide evidence of review and approval.Executives monitor the process. They watch out for risk conditions, monitor policy compliance, and champion process improvement initiatives.Auditors validate the process. They select samples of reconciliations and test compliance.
- ARM has features for several user groups:Administrators manage the process. They are responsible for system setup and configuration. They make sure that all accounts have been assigned and that the work is being done. Preparers & Reviewers do the work. They justify account balances, attach appropriate supporting documentation, and provide evidence of review and approval.Executives monitor the process. They watch out for risk conditions, monitor policy compliance, and champion process improvement initiatives.Auditors validate the process. They select samples of reconciliations and test compliance.
- ARM has features for several user groups:Administrators manage the process. They are responsible for system setup and configuration. They make sure that all accounts have been assigned and that the work is being done. Preparers & Reviewers do the work. They justify account balances, attach appropriate supporting documentation, and provide evidence of review and approval.Executives monitor the process. They watch out for risk conditions, monitor policy compliance, and champion process improvement initiatives.Auditors validate the process. They select samples of reconciliations and test compliance.
- ARM has features for several user groups:Administrators manage the process. They are responsible for system setup and configuration. They make sure that all accounts have been assigned and that the work is being done. Preparers & Reviewers do the work. They justify account balances, attach appropriate supporting documentation, and provide evidence of review and approval.Executives monitor the process. They watch out for risk conditions, monitor policy compliance, and champion process improvement initiatives.Auditors validate the process. They select samples of reconciliations and test compliance.
- ARM has features for several user groups:Administrators manage the process. They are responsible for system setup and configuration. They make sure that all accounts have been assigned and that the work is being done. Preparers & Reviewers do the work. They justify account balances, attach appropriate supporting documentation, and provide evidence of review and approval.Executives monitor the process. They watch out for risk conditions, monitor policy compliance, and champion process improvement initiatives.Auditors validate the process. They select samples of reconciliations and test compliance.
- ARM has features for several user groups:Administrators manage the process. They are responsible for system setup and configuration. They make sure that all accounts have been assigned and that the work is being done. Preparers & Reviewers do the work. They justify account balances, attach appropriate supporting documentation, and provide evidence of review and approval.Executives monitor the process. They watch out for risk conditions, monitor policy compliance, and champion process improvement initiatives.Auditors validate the process. They select samples of reconciliations and test compliance.
- ARM has features for several user groups:Administrators manage the process. They are responsible for system setup and configuration. They make sure that all accounts have been assigned and that the work is being done. Preparers & Reviewers do the work. They justify account balances, attach appropriate supporting documentation, and provide evidence of review and approval.Executives monitor the process. They watch out for risk conditions, monitor policy compliance, and champion process improvement initiatives.Auditors validate the process. They select samples of reconciliations and test compliance.
- ARM has features for several user groups:Administrators manage the process. They are responsible for system setup and configuration. They make sure that all accounts have been assigned and that the work is being done. Preparers & Reviewers do the work. They justify account balances, attach appropriate supporting documentation, and provide evidence of review and approval.Executives monitor the process. They watch out for risk conditions, monitor policy compliance, and champion process improvement initiatives.Auditors validate the process. They select samples of reconciliations and test compliance.
- ARM has features for several user groups:Administrators manage the process. They are responsible for system setup and configuration. They make sure that all accounts have been assigned and that the work is being done. Preparers & Reviewers do the work. They justify account balances, attach appropriate supporting documentation, and provide evidence of review and approval.Executives monitor the process. They watch out for risk conditions, monitor policy compliance, and champion process improvement initiatives.Auditors validate the process. They select samples of reconciliations and test compliance.