implementation audit and control background internal audit role go-live criteria audit approach -...
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Implementation Audit and Control
Background
Internal Audit Role
Go-Live Criteria
Audit Approach - Systems
Audit Approach - People
Summary
Agenda
Anheuser-Busch Companies, IncAnheuser-Busch Companies, Inc
7 Business Units
2 Legacy Systems
70 Payroll Areas
Employees:
- 8,000 Salaried Employees
- 21,000 Hourly Employees
Payroll Structure
Project Scope:Project Scope:
All Domestic U.S. Business Units (big bang
approach)
Legacy Payroll and Time Entry Replaced
Personnel Data Converted from Legacy
Systems
Centralized Processing
Payroll Project
A Big Project!A Big Project!
Pre-Work:Pre-Work:Understand Changes to Payroll Process
Learn SAP Payroll Concepts
Train Audit Staff
Determine Audit Plan
Provide Consulting on Proposed Control
Environment
Establish a Working Relationship with Project
Management
Internal Audit Role
Audit Plan:Audit Plan:
Test Project Go-Live Criteria
Evaluate Project Management
Determine Impact for Future Audits of Business
Units
Internal Audit Role
Plan It! Plan It!
Go-Live Criteria
System RelatedSystem Related
1. System Reliability
2. Testing Completed Successfully
People RelatedPeople Related
1. Businesses Ready to Support New Process
2. Payroll Group Staffed and Trained
3. Communication to Employees Adequate
System RelatedSystem Related People RelatedPeople Related
- Configuration - User Access
- Interfaces - Procedures
- Processing - Training
- Data - Communication
- Security
Go-Live Testing Areas
Remember the Remember the People! People!
SAP Payroll Configured to fit Organizational StructureSAP Payroll Configured to fit Organizational Structure Enterprise Structure
Location Department
Personnel Structure
Status Type
System - Configuration
A-BC Financial AdministrationA-BC Financial Administration
Corporate Audit
Corporate Audit
ActiveSalaryActiveSalary
Regular ExemptNon-Union
Regular ExemptNon-Union
Info-typesInfo-types
Allow Retroactive Accounting
Delimitation for Audit Trail
Data Entry Controls (Features, Actions, Screen
Controls)
System - Configuration
Infotype Controls = Infotype Controls = Data Accuracy Data Accuracy
Wage TypesWage Types
Characteristics are Adequate
Valid and Specific
Map to Correct G/L Accounts
System - Configuration
SAP On-Line SAP On-Line Documentation Documentation
Michael Jeanmougin
All interfaces have been identified and included All interfaces have been identified and included in the Design and Test Plansin the Design and Test Plans
Interface Errors should be Identified and Corrected
System - Interfaces
GIGO GIGO
SAPPayroll
SAPPayroll
TimeSystem
TimeSystem
Banks &Benefit
Providers
Banks &Benefit
Providers
Understand Process FlowUnderstand Process Flow
System - Processes
HR Master Data
HR Master Data
TimeReporting
TimeReporting
Regular Payroll Processing
Regular Payroll Processing
PayrollAccounting
PayrollAccounting
Check Printing &
Distribution
Check Printing &
Distribution
3rd PartyRemittances
3rd PartyRemittances
Off-CycleProcessing
Off-CycleProcessing
Maintain Data Integrity During ConversionMaintain Data Integrity During Conversion
Master Data
Data Already in SAP HR Module
Data to be Converted via New Info-
types
YTD Earnings and Deductions
Mid-Year Conversions
System - Data
Know Where the Data Resides Know Where the Data Resides
Supports Job Responsibilities and Safeguards DataSupports Job Responsibilities and Safeguards Data
System - Security
HR/Payroll SecurityData Focused
Limited Authorization Object
Permissions: M – Maintain; R - Read
Core SecurityTransaction Focused
Many Authorization Objects
Permissions: 01 – Create, 02 – Change, 03 - Display
Lock and Lock and LimitLimit!!
Procedures Around Payroll Processing are as Procedures Around Payroll Processing are as Critical as Controls in the SystemCritical as Controls in the System
Payroll and HR Personnel
Business Unit Personnel
System Support Personnel
People - Procedures
Procedures Defined Procedures Defined and In Place! and In Place!
People - Training
Training is a Key Component of Project SuccessTraining is a Key Component of Project Success
Inclusion in Development Project
Knowledge Transfer from Consultants
Methods:
Testing as Training
Classroom
Computer-Based
Communication Needs to be Timely and CompleteCommunication Needs to be Timely and Complete
Multiple Types of Media
Legal and Corporate Review
Hotline
People - Communications
No No Surprises! Surprises!
Employees only need Access to Perform their Employees only need Access to Perform their Job ResponsibilitiesJob Responsibilities
Everyone has access who needs access
Segregation of Duties Conflicts identified
Restricted Number of Employees designated for
Support
People – User Access
Keep the Keep the Data Safe! Data Safe!
Controls Identified for Go-Live DecisionControls Identified for Go-Live Decision
Key Controls
System Reliability – Process Payroll Within
Required
Time Windows
Testing Completed Successfully. Significant
Test
Problems Resolved and Re-tested.
Business Ready To Support New Process.
Payroll Group Staffed and Trained.
Communication to Employees Adequate or
Planned.
SummaryUnderstand How Key Processes Will Change.
Train Audit Staff.
Perform Audit:
Identify and Test Key Control Areas.
Review Configuration
Focus on items outside of SAP (training,
communication).
Continuously Communicate with Project and Audit
Teams.
Please remember to complete and returnPlease remember to complete and return your evaluation form following this session. your evaluation form following this session. Session Code: 507
314-577-2008
Thank you for attending!Thank you for attending!