SAP software for managing compliance with the Sarbanes-Oxley Act works with the data analysis, reporting, financial consolidation and risk management capabilities in mySAP ERP to provide a complete, integrated solution for ongoing Sarbanes-Oxley-compliant accounting, reporting and compliance process management. SAP customers are using these key components of mySAP ERP to help them manage internal controls in order to facilitate their compliance with Section 404, a major provision of the Sarbanes-Oxley Act, requiring that management report annually on the effectiveness of internal controls for financial reporting and that external auditors confirm management’s assessment.
“In today’s business environment, customers have to justify every IT dollar they spend, and they are investing in areas of strategic importance such as corporate compliance,” said Jim Hagemann Snabe, chief operating officer, Financial & Public Services, SAP AG. “SAP has the most complete, integrated corporate governance solution on the market today, and regulatory compliance is one of the reasons why our ERP suite is our strongest selling software.”
E.ON and THQ
“With more than 100 organizational units and more than 1000 users involved in the assessments of internal controls in our Section 404 project, we rely on the stability and scalability of SAP software to meet our reporting deadlines,” said Michael Hoefer, head of IT-Audit 2, E.ON Audit Services, responsible manager for the SAP implementation at E.ON, the world’s largest investor-owned energy service provider.
“We have found SAP’s solution for management of internal controls to be a useful system that provides a logical structure for organizing our Sarbanes-Oxley documentation,” said Al Hunt, director of Internal Audit at THQ, Inc, a leading global developer and publisher of interactive entertainment software. “The most important benefit for us has been that control and process assessments and testing and sign-off activities are scheduled and workflow tasks are automatically sent to each responsible person.”
SAP’s offerings for managing Sarbanes-Oxley compliance
SAP software for managing compliance with the Sarbanes-Oxley Act is part of mySAP ERP and also can be implemented as an add-on to SAP R/3. The software provides an integrated set of tools and technology that help organizations improve their internal control testing projects for ongoing compliance with the U.S. Sarbanes-Oxley Act as well as an expanding array of regulations and standards such as France’s Loi de Sécurité Financière LSF, or the Netherland’s Tabaksblat.
The SAP software’s key components are designed to improve and streamline the auditing process, internal controls management and “whistle blowing” procedures. The software’s audit information system provides easy access to key reporting controls, such as segregation of duties to reduce employee error and fraud and reconciliation of discrepancies between sub-ledgers and general ledgers. The results of these reporting controls can be documented in the management of internal controls application, which leverages the workflow capabilities of the SAP NetWeaver platform to support a proven, internal-controls review and problem-resolution process, significantly reducing administrative costs related to compliance. “Whistle blowing” functionality enables employees to anonymously report accounting irregularities, a Sarbanes-Oxley Section 301 requirement.
Source: SAP AG