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8/19/2019 ACL Continuous Controls Monitoring Overview-1
http://slidepdf.com/reader/full/acl-continuous-controls-monitoring-overview-1 1/6
CONTINUOUS
CONTROLS
MONITORING
Support Regulatory Compliance
Improve Cost Management
Drive Operational Performance
CLARITY.
CERTAINTY
CONFIDENC
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ACL CCM solutions address controls and business challenges within corefinancial and operational processes. CCM application modules include:
General Ledger
ACL CONTINUOUS CONTROLS MONITORING
ACL CCM solutions provide an independent control review mechanism to help organizations assure the
effectiveness of internal controls, reduce operational risks, minimize profit erosion, and mitigate the risk
of fraud, while meeting increasing regulatory requirements. CCM controls tests have been designed
to support the COSO (Committee of Sponsoring Organizations) Enterprise Risk Management Framework,
recognized as the standard for enabling compliance with Section 404 of the Sarbanes-Oxley Act.
CCM solutions identify errors, fraud, and inefficiencies by independently checking and validating
transactions against specified control parameters and business rules. Summary reports, available through
an intuitive browser-based user interface, provide the opportunity to drill down to specific exceptions and
transactions. Management and business process owners receive timely notification of control breaches, can
quickly review quantified exposure of business risk, and investigate and resolve potential problems before
they escalate. As a result, organizations can better support compliance, contain costs, and minimize losses.
Executives today are more challenged than ever to make quick, well-informed decisions
that address increasing business complexity and regulatory requirements. Close examination
of the business transactions underlying financial reporting is needed to uncover unforeseen
risks, potential control breaches, and opportunities for operational improvements.
ACL Continuous Controls Monitoring (CCM) provides this critical insight. Built on
powerful ACL technology, CCM solutions extend best practices in controls compliance
and transactional analysis into core business processes.
Control objectives addressed by CCManalytics across key business processes:
Authorization
Accuracy
Completeness
Validity
Efficiency & Effectiveness
Segregation of Duties
Regulatory Compliance
COSO ENTERPRISERISK MANAGEMENT
Supported by ACLtechnology
Control Activities
Risk Response
Risk Assessment
Event Identification
Objective Setting
Information & Communication
Monitoring
S t r a t e
g i c
O p e r a t i
o n s
R e p o r t
i n g
C o m p l i a
n c e
Internal Environment
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SUPPORT FOR SUSTAINABLE
SARBANES-OXLEY 404 COMPLIANCE
Section 404 of the Sarbanes-Oxley Act requires management
certification and external attestation that the internal controlsand procedures underlying financial reporting are ef fective.
Continuous monitoring of the controls governing financial
transactions provides an increased level of assurance and
confidence to management, auditors, board directors,
shareholders, and other key stakeholders.
ACL CCM solutions automate internal controls testing in
key financial and operational processes across the enterprise
through transaction analysis from any source. Organizations
gain independent, comprehensive assurance of the effectiveness
of internal controls – and support sustainable compliance,
year after year.
GOOD GOVERNANCE IS GOOD BUSINESS
While regulatory compliance requirements may be the catalyst
to validate controls effectiveness, best practices in corporate
governance are also good business. ACL CCM solutions enable
financial managers to closely review internal controls effectiveness,
and provide immediate opportunities to realize cost savings, reduce
operational risks, and improve business performance.
The current business environment continues to exert pressure on
organizations to reduce expenses and inefficiencies while improving
top-line revenue growth. Faced with a dynamic regulatory landscape,
fewer resources, less time, and mounting demands from stakeholders tomitigate business risk, organizations must formulate strategies to contain
costs, prevent fraud, safeguard corporate assets, and address revenue
leakage. ACL CCM solutions provide value beyond meeting regulatory
compliance requirements by enabling organizations to continuously test
the integrity of transactions and rapidly identify and solve control issues
before profit erosion impacts bottom-line performance.
BENEFITS OF ACL CCM SOLUTIONS
Independent testing of controls – through the review
of 100 percent of transactions from any source
Timely notification to management of control
breakdowns – an “early warning system” of compliance
risk, enabling control weaknesses to be fixed before they
materially impact financial results or are reported ex ternally
Improved fraud detection and reduction of
business risk – through identification of control gaps
and weaknesses that can lead to error, abuse, and fraud
Improvements to efficiency and effectiveness
– with potential to increase profitability by containing costs,minimizing losses, and improving revenue collection
Extensibility to multiple end-to-end business
processes – with independent assurance of controls
effectiveness and transaction integrity across the enterprise
Sustainable compliance – ongoing, automated
internal controls testing that provides cost-effective
support for compliance programs
“In the past, internal controls were merely considered
by auditors; now they will have to be tested and
examined in detail. That process will add an important
protection for investors because solid internal controls
are the first line of defense against misconduct and
one of the most effective deterrents to fraud.”
William J. McDonough Public Company Accounting Oversight Board Chairman
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ACL BUSINESS ASSURANCE
ANALYTICS TECHNOLOGYWith ACL CCM solutions, organizations can continuously
test and monitor internal controls, embedding audit “best
practices” into organizations’ day-to-day business operations.
They apply automated, pre-defined analytics to critical control
points, mapped to the COSO framework, within core business
process areas. By comparing and analyzing data from multiple
systems across the enterprise, ACL CCM solutions support
efficient, independent testing of business transactions to
identify errors, exceptions, and control weaknesses
Management and compliance teams receive timely
notification of control exposures within the enterprise
– and gain independent assurance of the integrity of
transactions underlying financial reporting.
The key attributes of ACL CCM technology
include the ability to:
Check and validate transactional data from
any ERP (including SAP, Oracle, and PeopleSoft),
mainframe system, or custom-built application,
against organizations’ control parameters and
business rules
Rapidly analyze unlimited volumes of data,
with seamless data access and aggregation
from virtually any enterprise application, while
maintaining data integrity
Leverage powerful ACL analytics to identify suspicious
activity, errors, segregation of duties issues, and
exceptions that may be hidden within high volumes
of transactions
Receive prompt notification of control breaches,
through an easy-to-use browser-based user interface
Quickly review quantified exposure of business
risk, and drill down to specific exceptions and
transactions to resolve potential problems before
they escalate
The flexible nature of ACL CCM solutions also recognizes
that every organization’s controls and operational policies
are unique – even within common business processes.
The analytic parameters can be easily fine-tuned by authorized
personnel as circumstances change – for example, when
approval limits change, staff take on new or expanded
responsibilities, or business risk profiles demand more
frequent testing of key controls. ACL CCM technologyprovides management with an enterprise-wide approach
to controls testing and compliance that is efficient,
cost-effective, and sustainable.
A C L C C M S
O L U T I O N
B U S I N E S S P R O C E S S A R E A S
OtherPayrollGeneralLedger
AccountsPayable
AccountsReceivable
Business ProcessOwners
FinancialManagers Auditors
Present Results
Access Data
Test
Transactional Data
Identify Control Exceptions
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THE NEED FOR CONTINUOUS CONTROLS MONITORINGToday the need for continuous monitoring of controls is more critical than ever.
Financial managers face challenges that include the need to manage regulatory
compliance, reduce financial process costs, improve revenue assurance processes,
oversee outsourcing arrangements, and monitor cross-organizational business processes.
All these point to the need to refocus on financial controls in business transactions.
Typically organizations implement a range of controls to detect and prevent significant
errors, fraud, or inefficiency. However, in reality, no controls system is entirely effective.
Manual controls break down as transaction volumes increase. The pressures of growing
workloads and increasing business complexity can make it operationally expedient to
circumvent controls. Controls available in enterprise applications may be overlooked or
simply not implemented due to time, cost, and efficiency. Organizations are exposed to
potential financial loss while management and audit run the risk of failing to maintain
effective internal controls and meet the requirements of regulatory compliance initiatives
(e.g. Sarbanes-Oxley Section 404). While data analysis technologies have been used
successfully by internal audit to assess internal controls and identify transaction errors
and exceptions, such reviews frequently take place long after the transactions have
occurred, limiting management’s ability to take timely and corrective action.
The increasing costs of external audits and compliance reviews are pressuring organizations
to find a cost-effective, reliable, and sustainable means of validating controls performance.
There is an identified need for technology solutions that can automate the independent
and continuous testing and monitoring of controls.
“Companies should not reinvent the wheel for SOX compliance . . . but rather
make new technology investments to automate key parts of the process
for repeatability, sustainability, and cost effectiveness . . . Key technologies
can reduce the cost of SOX compliance upwards of 25 percent, as compliance
has been a mostly manual, people-intensive process.”
AMR Research – Decisions 2005
“The value of continuously monitoring and auditing controls has been discussed
and experimented with for a considerable time, but two factors are now helping it
to become standard practice. Specifically, enhanced computer technologies and the
impact of legislative changes such as the Sarbanes-Oxley Act are serving to facilitate
and accelerate the use of continuous monitoring approaches.”
The Honorable David M. Walker,
Comptroller General of the United States and
Chair of the Center for Continuous Auditing Advisory Board
CLARITY.
CERTAINTY.
CONFIDENC
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©2006 ACL Services Ltd.CCM/B/E/230206Printed in Canada
ABOUT ACL
ACL Services Ltd. is the leading global provider of Business Assurance Analytics to financial
executives, compliance professionals, and auditors. Combining market-leading data analysis
software and professional services expertise, ACL solutions give organizations confidence in the
accuracy and integrity of the transactions and the effectiveness of the internal controls underlying
increasingly complex business operations. Since 1987, ACL’s proven technology has enabled financialdecision-makers to assure controls compliance, reduce risk, detect fraud, minimize losses, enhance
profitability, and achieve fast payback.
ACL delivers its solutions in more than 130 countries through a global network of ACL offices and
channel partners. Our customers include 70 percent of the Fortune 500 companies and over two-thirds
of the Global 500, as well as hundreds of national, state, and local governments, and the Big Four
public accounting firms.ACL Headquarters
T +1 604 669 4225F +1 604 669 3557
acl.com ACL, the ACL logo, the ACL logo with the text “Data you can trust. Results you can see.”, and Audit Command Language are trademarks or registered trademarks of ACL Services Ltd.All other trademarks are the property of their respective owners.
ENTERPRISE SOLUTIONS FOR CONTROLS MONITORINGACL Continuous Controls Monitoring solutions address controls and business challenges within core financial and operational processes
that represent significant areas of potential business risk. The extensible CCM framework allows organizations to easily add application
modules to gain immediate and comprehensive insight into control exposures across the enterprise. The ACL CCM product suite addresses
the following core business processes:
General Ledger
Order-to-Cash Cycle
Payroll
Purchase-to-Payment Cycle
Purchasing Cards
Travel & Entertainment Expenses