Download ppt - Information Systems Security Norway Company Analysis

Thomas BishopGinger Edmonds

Daniel CarrierCory Facemire

Group 7

Criteria for Company Framework

CIA Fact book

Research Insight

Company 10K for last five years

Individual Company Website

Yahoo Finance

The Ranking System 1). Does the company include an external audit within their

10k Reports? Scoring: 0 – was not included in the reports 5 – included, but showed weak internal controls 10 – included and showed no internal control weakness

2). What is the degree that risk, controls and governance are mentioned within the reports? (Norway Government stds)

Scoring: 0 – if controls are only mentioned briefly 5 – if internal controls are mentioned in additional sections more than once 10 – internal controls are mentioned throughout the reports greater than two

different occurrences

3.) Does the company disclose improvements about their internal controls?

Scoring: 0 – no mention of any weakness or strengths 5 – shows weakness within the system 10 – show improvements upon prior areas of weakness

4.) Does the company mention or show that management is ultimately responsible for the company’s internal controls?

Scoring : 0 – no mention of management responsibility 5 – show that management is held responsible for internal controls 10 – based on management’s evaluation of the company’s internal

controls are effective

5). How well do the companies disclose their Internal Controls?

Scoring : 0 – no framework or structure was mentioned for internal controls

within the report 5-mention internal controls and disclosures 10 – internal controls substantially presented within the reports

6). How does the company rank according to it’s financial and operational risk?

Scoring : 0-High risk 5-Medium risk 10-Low risk

STATOILHYDRO ASA

Integrated Oil & Gas

World’s largest operator in

water > 100 meters

Norwegian State holds 65%

Focus upstream oil & gas

operations

Wright Investment Services

Scorecard: STATOILHYDRO ASAYear ended 2003 2004 2005 2006 2007

Question:

1 – External Audit 5 5 10 10 0

2 – RCG 0 0 0 5 10

3 – Improvements 10 10 5 5 5

4 – Mgmt Responsibility 0 0 0 0 0

5 – Internal Control 5 5 10 10 10

6 – Fin/Oper. Risk 5 5 5 5 5

Total: 25/60 25/60 30/60 35/60 30/60

Average: 24/60=40%

StrengthInternal Control

WeaknessManagement Responsibility

AKER SOLUTIONS ASA Oil & Gas Exploration & Prod

Subsidiary to Aker Asa

Ownership

Multiple Industries

Wright Investment Services

Scorecard: AKER SOLUTIONS ASA

Year ended 2003 2004 2005 2006 2007

Question:

1 External Audit 0 0 0 0 0

2 RCG 0 0 0 5 5

3 Improvements 5 5 10 10 10

4 Mgmt Responsibility 5 10 10 10 10

5 Internal Control 5 5 10 10 10

6 Fin/Oper. Risk 5 10 0 0 0

Total: 20/60 30/60 30/60 35/60 35/60

Average: 25/60=42%

StrengthManagement Responsibility

WeaknessRisk, control & governance

SOLSTAD OFFSHORE ASA

Oil & Gas Drilling

29 vessels, 3 segments

1000 personal 73% @ sea

2216 million NOK

North Sea, Mediterranean,

West Africa, Asia, and

The Americas

Scorecard: SOLSTAD OFFSHORE ASA

Year Ended: 2003 2004 2005 2006 2007

Question:


2 RCG 5 5 5 5 10



5 Internal Control 5 5 5 5 5


Total: 15/60 15/60 15/60 15/60 15/60

Average: 15/60=25%

StrengthRisk, control & governance

WeaknessManagement Responsibility

PGS-PETROLEUM GEO-SERVICES

Oil & Gas Drilling

Multi-client data library

Corporate Governance

Geophysical Services

Investor Relations

Scorecard: PGS-PETROLEUM GEO-SERVICES

Year Ended: 2003 2004 2005 2006 2007

Question:


2 RCG 0 0 5 5 5



5 Internal Controls 0 5 5 0 5


Total: 15/60 15/60 20/60 25/60 35/60

Average: 18/60=30%

StrengthExternal Audit

WeaknessFin/Oper. Risk

REVUS ENERGY ASA Oil & Gas Exploration & Prod

Founded in 2002

Medium Sized company

Explores Norwegian continental

shelves

Scorecard: REVUS ENERGY ASA

Year Ended: 2003 2004 2005 2006 2007

Question:


2 RCG 0 0 5 5 10




6 Fin/Oper. Risk 5 5 10 10 10

Total: 5/60 5/60 30/60 35/60 40/60

Average: 19/60=32%

StrengthFin/Oper. Risk

WeaknessImprovements

SUBSEA 7 INC Oil & Gas Drilling

Global operations

5500 personal on & offshore

World leading subsea engineering

& construction

Scorecard: SUBSEA 7 INC

Year Ended: 2003 2004 2005 2006 2007

Question:


2 RCG 0 0 5 10 10




6 Fin/Oper. Risk 0 5 0 10 10

Total: 0/60 5/60 25/60 50/60 45/60

Average: 21/60=35%

StrengthInternal Controls

WeaknessImprovements

Recap of initial rankings

Rankings of Criteria

Conclusions: Higher income does not equal increased controls

Overall – internal and external controls were increased due to the implementation of IFRS in 2005

Aker Solutions & Solstad Solutions did not support an external audit in the past 5 years

There was an overall concern to increase governance after the implementation of IFRS in 2005

Recommendations: Corruption control-government Institution of Internal Auditors Norway More External Audits Put more internal controls in place Invest in Statoilhydro Benchmark against Statiolhydro

Any Questions?