Financial Audit Scoping Tool Accelerator for Oracle GRC Applications_part1 pdf

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Financial Audit Scoping Tool
Accelerator for Oracle GRC Applications
Implement Audit Standard 5 (AS5) scoping to streamline financial
reporting compliance
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• Financial Audit Scoping Tool Accelerator
Overview
• Business Challenges
• Solution Details
• Challenges, Capabilities & Benefits
Financial Audit Scoping Tool
Agenda
• Process Flows
• Capabilities Details
• Related Requirements Coverage
• Oracle Accelerators for Oracle GRC
Applications
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Accelerator purpose:
• Integrate Oracle Enterprise GRC Manager with Hyperion Financial
Management to allow auditors and managers to evaluate business
process risk based on its impact on financial balances
• Accelerator benefit:
• Helps customers implement Audit Standard 5 (AS5) scoping to streamline
financial reporting compliance
Financial Audit Scoping Tool
Solution Summary
• Reduce external audit fees by providing a methodical, rule-based

selection criteria that aligns financial audit activities with controls
Accelerator items:
• Auditor Workbench with robust, integrated controls selection based on
accounts, organizations, financial balances and risk-based criteria
• Pre-built analytics of in-scope controls for assessments
• Automated creation and initiation of EGRCM Controls Assessments
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• Financial Audit Scoping Tool Accelerator
Overview
• Business Challenges
• Solution Details
• Challenges, Capabilities & Benefits
Financial Audit Scoping Tool
Agenda
• Process Flows
• Capabilities Details
• Related Requirements Coverage
• Oracle Accelerators for Oracle GRC
Applications
This is trial version
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Percentage of Internal Control
Weaknesses by Category
Personnel
Issues
17%
Financial
Significant
Account

Other
6%
Financial Audit Scoping Tool
CFOs struggle to improve governance of their financial processes
SEC fact:
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.
Source: SEC Approves PCAOB Auditing Standard No. 5, July 2007
Financial
Close and
Controls
37%
Level
40%
Source: Market Reactions to the Disclosure of Internal Control Weaknesses and to the
Characteristics of those Weaknesses Under Section 302 o the Sarbanes Oxley Act Of 2002,
July 2007
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Financial Audit Scoping Tool
Frequency and Complexity of Transaction
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• Top-Down, Risk-Based Approach for Identifying Significant
Accounts and Key Controls to Audit
• Focuses Testing on Risk Exposure rather than Coverage
• Reduces Control Testing Audit Costs
• Fine Tunes the Definitions of Material Weakness and
Significant Deficiency

Financial Audit Scoping Tool
Best Practices to Reduce Level of Effort
• Guidance is Designed to Facilitate more Efficient External
Auditing including
• Scaling of the Audit for the Size and Complexity of the
Company
• Removes Requirements to Evaluate Management’s Process
7
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• Financial Audit Scoping Tool Accelerator
Overview
• Business Challenges
• Solution Details
• Challenges, Capabilities & Benefits
Financial Audit Scoping Tool
Agenda
• Process Flows
• Capabilities Details
• Related Requirements Coverage
• Oracle Accelerators for Oracle GRC
Applications
This is trial version
www.adultpdf.com
Financial Audit Scoping Tool
GRC Fundamental to Financial Close
Ledger
Close
Data
Assurance

Consolidatio
n
Internal
Managemen
t Reporting
External
Financial
Reporting
Filing
Documentatio
n
Financial Processes, Risks & Controls
Assessment Control Effectiveness Orchestration Misstatement Risk Modeling
Close
Compliance
Testing
Process-Based
Audit Scoping
Accounts-Based
Audit Scoping
Risk-Based
Audit Scoping
Investigation
Suspicious Financial Transaction Analysis & Monitoring
Remediation Risk Mitigation Planning, Tracking and Evidencing
Certification Internal Controls over Financial Reporting 302 Certification
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Key Capabilities:
• A unified workbench that brings HFM and EGRCM data together

into a single workspace
• Consolidated significant accounts in HFM that are mapped to
controls in EGRCM are readily identified, as well as associated
risks
• Controls that are identified as in-scope are easily assigned to
testers in an assessment plan
Financial Audit Scoping Tool
Solution Details
testers in an assessment plan
• Executive dashboards with the financial coverage of the
assessment plan, as well as the type and nature of the controls
that are in scope
EGRCM Capabilities:
• EGRCM enables customers to manage GRC-related business
processes across the enterprise and HFM enables customers to
centralize financial reporting and enterprise consolidations.
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Customer Challenge Solution Benefit
Reducing the cost of controls
assessments
FAST integrates with the EGRCM controls component. Using FAST auditors can
easily perform a top-down approach to deciding which controls should be in-
scope for any given assessment
Integrating Financial close data with
Controls data
FAST integrates with Hyperion Financial Management. It includes a interactive
workbench that shows users how many controls are associated with monitored
reported financial amounts, thereby easily identify controls for significantly large
accounts

Understanding whether the in-scope
controls as mitigating the most relevant
risks
FAST integrates with the EGCRM risk component. Evaluating controls by their
related risks helps the auditor understand management’s evaluation of the
significance of any given risk
and the likelihood and impact of any given risk.
Financial Audit Scoping Tool
Customer Challenges & Benefits Summary
11
risks
significance of any given risk
and the likelihood and impact of any given risk.
Designing a controls assessment that
is repeatable and applies consistent
decision criteria
FAST enables an iterative controls scoping processes based on multiple
criteria. Once satisfied with the composition of the controls assessment, the in-
scope controls and can export, reloaded and modified for the next audit cycle.
Designing a controls assessment that is
composed of a certain controls
properties such as costs, control
methods and control types
FAST includes tables and graphical analysis that intuitively displays the
composition of the in-scope controls to achieve the proper coverage, cost and
make up of key controls, automated and manual controls and detective and
preventive controls
Automatically produce a controls
assessment plan based on an
iterative, robust selection criteria

FAST will programmatically setup a Controls Assessment plan that includes
multiple assessment activities, controls and steps that are managed and
monitored to completion in EGRCM.
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