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This was presented on March 18, 2014 in FulcrumWay's monthly Webinar sessions, which occur on the 3rd Tuesday of every month. Anyone may attend, just go to http://www.fulcrumway.com/events/upcoming-events for details. Hope to see you there!! This presentation addresses: Top Financial Close Challenges in EBS R12 Overview of Financial Controls Advanced Controls for Record to Report Case Study
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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
www.fulcrumway.comPage 2Copyright © FulcrumWay
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
www.fulcrumway.comPage 3Copyright © FulcrumWay
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
www.fulcrumway.comPage 4Copyright © FulcrumWay
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
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FulcrumWay Clients Successful Track Record
Government Oil and Gas
Healthcare
Communications
Financial Services
Transportation Natural ResourcesManufacturing
Retail
High TechMedia/Entertainment Life Sciences
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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
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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
www.fulcrumway.comPage 8Copyright © FulcrumWay
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 Close and Controls
36%
Significant Account
Level40%
Other 6%
Percentage of Internal Control Weaknesses by Category
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Enterprise Close Process is Complex
Monitor Financial Close Controls
Sub Ledger Close General Ledger Close
Data Assurance Consolidation Internal
ReportingExternal
Reporting Filling
Close POClose Project Billing and CostingRun post process for PO, Projects, etcClose AR sub ledgerClose AP sub ledgerClose Inventory sub ledgerClose HCM sub ledgerClose Assets sub ledgerRun revaluation/re-measurementRun GL post process for AP,AR, FA, etc.
Reconcile sub ledgers to GLReconcile Bank AccountsReconcile all accountsApprove adjustmentsClear suspense accountsPost accrualsRun 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 allocationsRun consolidation to summary ledgersMake Topside EntriesRun reports for FASBRun reports for KPI’sRune reports for FXRun reports for Retained Earnings
Run period-end management reportsReview reports for business performance and realignment
Generate external reportsCompile Disclosure ItemsGather other financial information
Deliver XBRL/Edgar filings to the SECDeliver statutory filings such Tax
Top Challenges
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Enterprise Close Process is Complex
Monitor Financial Close Controls
Sub Ledger Close General Ledger Close
Data Assurance Consolidation Internal
ReportingExternal
Reporting Filling
Close POClose Project Billing and CostingRun post process for PO, Projects, etcClose AR sub ledgerClose AP sub ledgerClose Inventory sub ledgerClose HCM sub ledgerClose Assets sub ledgerRun revaluation/re-measurementRun GL post process for AP,AR, FA, etc.
Reconcile sub ledgers to GLReconcile Bank AccountsReconcile all accountsApprove adjustmentsClear suspense accountsPost accrualsRun 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 allocationsRun consolidation to summary ledgersMake Topside EntriesRun reports for FASBRun reports for KPI’sRune reports for FXRun reports for Retained Earnings
Run period-end management reportsReview reports for business performance and realignment
Generate external reportsCompile Disclosure ItemsGather other financial information
Deliver XBRL/Edgar filings to the SECDeliver statutory filings such Tax
Top ChallengesNumerous 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
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Reconciliation requires clear communication and effective collaboration
Account Reconciliation
ExecutivesAdministrators
Auditors
Preparers & Reviewers
Top Challenges
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Reconciliation requires clear communication and effective collaboration
Account Reconciliation
ExecutivesAdministrators
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
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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
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Oracle EBS 11i vs R12 Close ProcessFinancial Controls
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Oracle EBS R12 Sub-ledger Transaction ControlsFinancial Controls
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Oracle EBS R12 Period-End Task ControlsFinancial Controls
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Oracle EBS R12 Import JournalsFinancial Controls
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Oracle EBS R12 Concurrent Request: Create AccountingFinancial Controls
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Oracle EBS R12 Concurrent Request: Period-End – AP Trial BalanceFinancial Controls
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Month End ReportsFinancial Controls
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Oracle EBS R12Account ReconciliationFinancial Controls
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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
www.fulcrumway.comPage 23Copyright © FulcrumWay
Standard + Advanced Controls
User Roles
3-Way Match
Track Payments
Sentiment Analysis
Split Purchase
Orders Hide
Displays of Sensitive
DataDuplicate Payments
Transaction Threshold Amounts
Duplicate Vendors
Fine-grained
User Access
ConfigurationSnapshots &
Audit Trial
Transaction Pattern Analysis
Fuzzy Logic, ‘similar values’
Advanced Controls
StandardControls
Approval Hierarchies
Track Discounts
Advanced Controls
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Enterprise Controls PlatformAdvanced Controls
Enterprise Risk & Controls Foundation
Dashboards, Reports and AlertsNotificationsWorklists Email PerspectivesSearch
Risk, Controls & Compliance ManagementReviewsDocumentation Assessments RemediationSurveys
Continuous Controls & Risk MonitoringSetupsAccess Master Data Audit TestsTransactions
User Authored ControlsData Connectors Fraud & Error Patterns
Ro
le B
ase
d A
cc
es
s S
ec
uri
ty
We
b S
erv
ice
s &
AP
Is
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
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Flow Controls generate close tasks and prevent close errorsAdvanced Controls
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Flow Controls generate close tasks and prevent close errorsAdvanced Controls
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Transaction Controls Detect unusual Journal Entries Advanced Controls
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Transaction Controls Detect unusual Journal Entries Advanced Controls
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Monitor Key Configurations in ERPAdvanced 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.)
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Monitor Key Configurations in ERPAdvanced Controls
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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
www.fulcrumway.comPage 32Copyright © FulcrumWay
Wall Street Firm Maintains Control during Financial Crises
Our ClientLeading 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.
ChallengesReduce costs related to audit and controls assessmentsReduce risk associated with the current state highly manual, fragmented processNeed Enterprise-wide visibility into the Risk and Compliance processesLeverage investments in technology to provide a foundation for Enterprise Risk Management
Solutions GRC, ERM and Fin Governance AnalyticsOracle GRC Manager
SuccessesImproved 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 checklistDelivered 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
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Case Study Record to Report Process Flow
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Case Study Record to Report Process Flow
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Define Enterprise Structure
Review TaskAssignments
CompleteTasks
ApproveTasks
Submit Schedules
CompleteClose/ReportingSchedules
Setup/OpenTemplates/Tasks
Update/InitiateTasks
ReviewTasks
CloseRegion
Task Owner/Reviewer/ApproverGlobal AdministratorRegional
Financial Director
Corporate
Controller
Release Tasks
Record to Report Process FlowCase Study
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Case Study Task Management Dashboard
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Case Study Results and Benefits
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Case Study Advanced Controls with Hyperion
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Case Study Advanced Controls with Hyperion
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Case Study Advanced Controls with Hyperion
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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
www.fulcrumway.comPage 42Copyright © FulcrumWay
Leader in Risk Based Enterprise ControlsQ & A
One-on-One with ExpertsDownload DataProbe
Follow FulcrumWay on LinkedIn for ERP Risk and Controls