Upload
billy82
View
374
Download
1
Tags:
Embed Size (px)
DESCRIPTION
Citation preview
Elegantsolutions.ca
What You Didn’t Know You Don’t Know About Compliance
And What it Means to You as a Project Manager
August 17, 2006
Boyd Carter, PMP
Elegantsolutions.ca
“We have not designed the machinesthat are needed to build the machinesthat will be used to build the productthat we are planning to take to market”.
In other words:We don’t know what we don’t know.
Copyright © 2006 elegantsolutions.ca www.elegantsolutions.ca (Permission is granted to use unchanged. elegantsolutions.ca) 2
Elegantsolutions.ca
Agenda What you know you don’t know about compliance What you didn’t know you don’t know about
compliance What it means to you as a project manager Resources for the Project Manager
High-level annotated Microsoft Project Plan Description of “must have” resource documents Links to the best online resources A copy of the presentation
Copyright © 2006 elegantsolutions.ca www.elegantsolutions.ca (Permission is granted to use unchanged. elegantsolutions.ca) 3
Elegantsolutions.ca
What You Know You Don’t Know About Compliance
Most people know they don’t know:
Details of the legislation
About Assessments and Attestations
What CFO Certification means
Copyright © 2006 elegantsolutions.ca www.elegantsolutions.ca (Permission is granted to use unchanged. elegantsolutions.ca) 4
Elegantsolutions.ca
What You Know You Don’t Know About Compliance (Cont.)
Details of the US Legislation Sarbanes-Oxley Act of 2002 (Public Law 107-204---July 30, 2002, 107th
Congress of the United States of America) Title I – Public Company Accounting Oversight Board
Section 102 – Registration with the Board (to prepare and/or issue Audit Reports) AS2 (Auditing Standard No. 2)
Title II – Auditor Independence Title III – Corporate Responsibility
Section 302 – Corporate Responsibility for Financial Reports Title IV – Enhanced Financial Disclosures
Section 404 – Management Assessment of Internal Controls Titles V – XI
V – Analysts Conflicts of Interest VI – Commission Resources and Authority VIII – Corporate and Criminal Fraud Accountability IX – White-collar Crime Penalty Enhancements X – Corporate Tax Returns XI – Corporate Fraud and Accountability
Copyright © 2006 elegantsolutions.ca www.elegantsolutions.ca (Permission is granted to use unchanged. elegantsolutions.ca) 5
Elegantsolutions.ca
What You Know You Don’t Know About Compliance (Cont.)
Details of the Canadian Legislation Bill 198 – An Act to implement budget measures and other initiatives
of the Government, 3rd Session, 37th Legislature, Ontario, 2002 (and subsequent amendments) Part XXVII – Amends the Ontario Securities Act
Ontario Securities Commission – A Self-funded Crown Corporation and the Regulator of Ontario’s Capital Markets: Charter of Corporate Governance (The OSC administers the Securities Act Ontario and Commodity Futures Act, and is empowered to make legally binding rules. )
CSA – Canadian Securities Administrators is the council of Canada’s thirteen provincial and territorial securities regulatory authorities (SRAs). NI 52-108 – Auditor Oversight MI 52-109 – Certification of Disclosure… MI 52-110 – Audit Committees MI 52-111 – Reporting on Internal Control… (not implemented) CSA Notice 52-313 – Status of MI 52-111 (Decision to not implement) and
proposed amended and restated MI 52-109
Copyright © 2006 elegantsolutions.ca www.elegantsolutions.ca (Permission is granted to use unchanged. elegantsolutions.ca) 6
Elegantsolutions.ca
What You Know You Don’t Know About Compliance (Cont.)
About Assessments and Attestations SEC. 302. CORPORATE RESPONSIBILITY FOR FINANCIAL REPORTS.
(a) REGULATIONS REQUIRED.—The Commission shall, by rule, require, for each company filing periodic reports under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m, 78o(d)), that the principal executive officer or officers and the principal financial officer or officers, or persons performing similar functions, certify in each annual or quarterly report filed or submitted under either such section of such Act…
(SOX) SEC. 404. MANAGEMENT ASSESSMENT OF INTERNAL CONTROLS. (a) RULES REQUIRED.—The Commission shall prescribe rules requiring each annual
report required by section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)) to contain an internal control report, which shall—
(1) state the responsibility of management for establishing and maintaining an adequate internal control structure and procedures for financial reporting; and
(2) contain an assessment, as of the end of the most recent fiscal year of the issuer, of the effectiveness of the internal control structure and procedures of the issuer for financial reporting.
(b) INTERNAL CONTROL EVALUATION AND REPORTING.—With respect to the internal control assessment required by subsection (a), each registered public accounting firm that prepares or issues the audit report for the issuer shall attest to, and report on, the assessment made by the management of the issuer. An attestation made under this subsection shall be made in accordance with standards for attestation engagements issued or adopted by the Board. Any such attestation shall not be the subject of a separate engagement.
What’s different about 302 and 404?
Copyright © 2006 elegantsolutions.ca www.elegantsolutions.ca (Permission is granted to use unchanged. elegantsolutions.ca) 7
Elegantsolutions.ca
What CFO Certification means
This is what CEO/CFO Certification means to one corporation
And similar requirements are in place for the US Exchanges
Key Requirements for a Compliance Framework (SOX 404 or MI 109)
What You Know You Don’t Know About Compliance
ControlDesign
ControlEffectiveness
Copyright © 2006 elegantsolutions.ca www.elegantsolutions.ca (Permission is granted to use unchanged. elegantsolutions.ca) 8
Elegantsolutions.ca
What You Didn’t Know You Don’t Know About Compliance
Most people didn’t know they really don’t know what is required in orderto assert “Internal Control Over Financial Reporting (ICFR or ICOFR)
Frameworks How to develop a Control Design How to evaluate Control Effectiveness How to provide evidence to support Certifications and Attestations
Copyright © 2006 elegantsolutions.ca www.elegantsolutions.ca (Permission is granted to use unchanged. elegantsolutions.ca) 9
Elegantsolutions.ca
Auditing Standard 2 (AS2)
COBITCOBITControl ObjectivesControl Objectives
ITILITILActivitiesActivities
ISO 17799ISO 17799SecuritySecurity
Internal ControlsInternal Controls--
Integrated FrameworkIntegrated Framework
(Not ERM)(Not ERM)
Version 2.0 benefits from lessons learned during the first two years.
Sarbanes-Oxley Act of 2002 Bill 198
What You Didn’t Know You Don’t Know About Compliance- Frameworks
Copyright © 2006 elegantsolutions.ca www.elegantsolutions.ca (Permission is granted to use unchanged. elegantsolutions.ca) 10
Elegantsolutions.ca
Conceptual Level
Framework Level
COSO (Sub-Components) Points of Focus - COBIT High-Level Control Objectives Level
COSO Bullets under Points of Focus – COBIT Detailed Control Objectives Level
COBITCOSO
COSOCOMPONENT
COBITDOMAIN
THE CORE FRAMEWORKPre-populated, fully annotated COSO and COBIT Control Objectives in increasing levels of detail.
> The company’s detailed processes
for achieving the Control Objectives
> Risk of Non-compliance N-C
THE EXTENDED FRAMEWORKThe Compliance Teams may populate the Processes, Risks, Controls and Tests at their preferred levels of granularity.
Activity-level guidance is provided with exemplar sets of controls and tests.
> Company Controls
Tests and subsequent Remediation
/ Remediation Action Plans, if required
What You Didn’t Know You Don’t Know About Compliance- Frameworks
Copyright © 2006 elegantsolutions.ca www.elegantsolutions.ca (Permission is granted to use unchanged. elegantsolutions.ca) 11
Elegantsolutions.ca
Certifications typically take place after remediation is completed, but remediation could be cut off at a point in time and status certified at that point in time. (“Certification” is certification of status at a point in time, not certification of compliance.)
If remediation is required, action plans are executed and the control re-tested. The current state of remediation (and future activity, if required) is documented at the time of certification.
> Remediation
> Remediation Action Plans
Achieving Operational Effectiveness
Documented at this level are the processes of the company
Documented at this level are specific risks associated with the process
Documented at this level are specific controls associated with the mitigation of risk
> The company’s detailed processes
for achieving the Control Objectives
> Risk of Non-compliance N-C
> Company Controls
> Tests
Documented at this level are specific tests associated with the control
Control
Design
Control
Effectiveness
What You Didn’t Know You Don’t Know About Compliance- How to Develop a Control Design and Evaluate Control Effectiveness
Copyright © 2006 elegantsolutions.ca www.elegantsolutions.ca (Permission is granted to use unchanged. elegantsolutions.ca) 12
Elegantsolutions.ca
“THE” Best Practices Frameworks
COSO – The Committee Of Sponsoring Organizations of the Treadway Committee
COBIT – Control Objectives for Information and Related Technology, Version 4
“THE” Best Practices Guidance
IT Control Objectives for Sarbanes-Oxley, Second Edition
and
“THE” Best Practices Project Plan The Compliance Road Map from IT Control Objectives
for Sarbanes-Oxley, Second Edition
What You Didn’t Know You Don’t Know About Compliance- How to provide evidence to support Certifications and Attestations
Copyright © 2006 elegantsolutions.ca www.elegantsolutions.ca (Permission is granted to use unchanged. elegantsolutions.ca) 13
Elegantsolutions.ca
What it Means to You as a Project Manager
- How to provide evidence to support Certifications and Attestations
Road Map Items 1 & 2
Copyright © 2006 elegantsolutions.ca www.elegantsolutions.ca (Permission is granted to use unchanged. elegantsolutions.ca) 14
Elegantsolutions.ca
What it Means to You as a Project Manager
- How to provide evidence to support Certifications and Attestations
Road Map Items 3 & 4
Copyright © 2006 elegantsolutions.ca www.elegantsolutions.ca (Permission is granted to use unchanged. elegantsolutions.ca) 15
Elegantsolutions.ca
What it Means to You as a Project Manager
- How to provide evidence to support Certifications and Attestations
Road Map Items 5 & 6
Copyright © 2006 elegantsolutions.ca www.elegantsolutions.ca (Permission is granted to use unchanged. elegantsolutions.ca) 16
Elegantsolutions.ca
Resources for the Project Manager
High-level annotated Microsoft Project Plan – On your CD
Description and links to “must have” resource documents (Remember, links are active only when the presentation is in “slide show mode”)
AICPA (for COSO) http://www.aicpa.org/index.htm
ISACA (for COBIT) http://www.isaca.org/
ITIL (IT Infrastructure Library) http://www.itil.co.uk/
ISO (International Organization for Standardization) http://www.iso.org/iso/en/prods-services/popstds/informationsecurity.html
SEC on SOX http://www.sec.gov/spotlight/sarbanes-oxley.htm
PCAOB Latest News http://www.pcaob.org/News_and_Events/Updates/index.aspx
OSC List of Regulations http://www.osc.gov.on.ca/Regulation/Rulemaking/Current/rrn_part5_index.jsp
The Canadian Securities Administrators http://www.csa-acvm.ca/home.html
Deloitte on CSA Notice 52-313 (on dropping 52-111): http://www.deloitte.com/dtt/article/0,1002,sid%253D3557%2526cid%253D115078,00.html
PWC’s CFOdirect Network http://www.cfodirect.pwc.com/CFODirectWeb/Controller.jpf?NavCode=MSRA-6NR6EK
And, of course, elegantsolutions.ca http://www.elegantsolutions.ca/
More Useful Documentation – On your CD
A copy of the presentation – On your CD
Copyright © 2006 elegantsolutions.ca www.elegantsolutions.ca (Permission is granted to use unchanged. elegantsolutions.ca) 17
Elegantsolutions.ca
Resources for the Project ManagerFinal thoughts for those attending today – buy these products for educational and project management purposes
COSO Small Public Companies Download
COSO Internal Controls – Integrated Frameworks download
COBIT4 Download and subscribe to COBIT Online
It Control Objectives for Sarbanes-Oxley, Version 2 (when it is released)
Mapping Documents from ISACA – some require registering and/or membership (Example – COBIT4 to PMBOC)
To my knowledge, all documents provided on the CD are in the Public Domain (unless otherwise noted.).