Continuous Auditing & Monitoring

 

• “Continuous monitoring is an automated feedback mechanism used by management to help ensure that systems and controls operate as designed, and transactions are processed in accordance with prescribed policies and processes.”
• Furthermore, the Institute of Internal Auditors (IIA) states that “continuous monitoring typically involves automated continuous testing of transactions within a given business process area against a set of control rules”.

 

Continuous Monitoring - The Synaxion Urbidata approach

 

• Continuous controls monitoring using scorecards with Key Risk Indicators (KRI’s) to assess the effectiveness of controls in and surrounding the business applications.
• Using our multi metric enabled indicators risks can be assessed more completely and accurately.
• Per indicator, per period and per scorecard (OpCo), automatic (targets versus actuals) and manual evaluations can be used.

CA/CM versus BI - The Synaxion Urbidata approach

  

Level	Continuous Auditing & Monitoring of controls and processes	Business Intelligence (BI)
Strategic	Number of significant deficiencies Enterprise Risk Management (ERM)	EBITA per Product Market Combination (PMC) Business Intelligence
Tactical	Amount of idle (valuated) stock Synaxion Urbidata CA/CM	Top 100 selling products / services Business Intelligence
Operational	Number of under invoiced sales contracts Synaxion Urbidata CA/CM	Margin per sales order Synaxion Urbidata CA/CM

 

Goals

 

• More efficient monitoring of risks in Sales, Purchasing, Human Resources and General Ledger
• Potential reduction of external audit fee
• More efficiency & effectiveness in the period end closing process
• More efficient validation of material master data (e.g. correct valuation)

 

Continuous Control Testing
 

Process Control	Purchase to Pay	Order to Cash	Finance to Report	Material to Product
User Controls	Monitoring open invoices	Monitoring open sales orders	Detecting duplicate payments	Detecting dead stock
Configuration Controls	3-way match	Configuration of sales condition types	Open posting periods	Configuration for negative stock
Procedural Controls	Purchase order request procedure	Discount procedure	Group accounting manual	Scrapping procedure
Authorization Controls	Authorization for changing approved purchase orders	Authorization on sales order document type	Authorization for reversing documents	Authorization for maintaining materials

 

For more information on this topic please read the Factsheet Synaxion CA/CM.