Immediate results for long-term peace-of-mind.

Transcription

1 Immediate results for long-term peace-of-mind.

2 Better Controls A Business Imperative The Internal Control Debate is Over In today s rapidly changing economy, there is an increasing need for simple and effective systems for internal control. Poor corporate governance can destroy reputations, stock prices, revenues and profitability. Senior executives recognize that preventing fraud and revenue leakage is not just good business it has become essential for survival. Profitability and Peace of Mind Internal controls help ensure financial information is correct, businesses are operating optimally and assets are safeguarded. Addressing errors and abuses, quickly and efficiently, will enhance profitability. Organizations typically lose about 5% of annual revenues to fraud, with the average scheme going undetected for 18 months. Organizations with controls in place, however, detect fraud sooner and report significantly lower losses.* A Simple, Reliable and Complete Solution CaseWare Monitor is an easy to implement and use continuous controls monitoring software solution. Through a single portal, all stakeholders can independently monitor controls across multiple businesses and systems. This collaborative framework helps you detect and correct errors and abuses before they become detrimental to your success. *Source: ACFE 2010 Global Fraud Study

3 Continuous monitoring uses control automation to reduce fraud and improve financial governance, typically resulting in a substantial return on investment. It improves the reliability of the controls, and it improves the management oversight, policy enforcement and operational efficiency for critical financial processes, often producing hard-dollar savings. Gartner CCM Magic Quadrant 2010

4 Closing the Governance Gap Monitoring is Mission Critical Implementing a system of internal controls is important, but to realize the long-term benefits, it must be monitored and maintained. Monitoring closes the loop of a properly designed controls environment without it, the governance framework is incomplete and internal control systems deteriorate over time. With the right monitoring systems in place, organizations can identify internal control deficiencies quickly, take steps to remedy the situation, and make more informed decisions moving forward. The CaseWare Value Proposition The sooner control deficiencies are detected, the greater the value to the organization. For example, detecting duplicated vendor invoices or insurance claims before payment is made will save you far more money, energy and time than detecting them afterwards. CaseWare Monitor delivers an effective solution for continuous monitoring of internal controls. By automating tasks that are often inconsistent, inefficient and ineffective, the solution affords you the best opportunity for early detection Monitoring Applied to the Internal Control Process Risk Assessment Control Environment Specify Organizational Objectives Monitoring Control Activities Information & Communication Nearly 9 in 10 rated continuous monitoring and auditing software applications the most important technology to internal audit over the next five years. [Use] is expected to increase from 39% to 89% within the period. PricewaterhouseCoopers Internal Audit 2012 Source: COSO Guidance on Monitoring Internal Control Systems, 2009

5 CaseWare Monitor It s Just Good Business CaseWare Monitor is the continuous controls monitoring solution that provides secure, flexible and immediate results to prevent fraud and revenue loss, enhance business efficiencies, and achieve control and compliance objectives. This complete solution allows you the freedom and peace of mind to concentrate on what s important making critical decisions, building relationships and growing your business. Key Benefits Enterprise-Wide Oversight Effectively monitors multiple systems across the enterprise Delivers a holistic view of business processes for improved organizational oversight Removes blind spots associated with monitoring only a single application Immediate Detection and Response Continuously and automatically detects errors or abuses within any system Delivers proactive alerts to stakeholders throughout the organization Improves reaction time of individuals with ability and authority to take action Loss Prevention and ROI Helps realize profit potential by reducing inaccurate or malicious reporting Provides opportunities to proactively resolve issues and prevent revenue leakage Achieves hard-dollar savings and a rapid return on investment Savings and Efficiency Helps improve operational efficiency and internal controls Creates a sustainable process that achieves control and compliance objectives Reduces audit and compliance costs with automated testing, reporting and management Ease of Implementation and Use Integrates easily, requiring no changes to existing business systems May be implemented and maintained without the use of expensive consultants

6 One Solution for Any Organization Recognized as a leader in terms of flexibility, reliability and results, CaseWare Monitor is the perfect fit for any organization in any industry around the world. Whether deploying in a single location or across a diverse group of companies, it is ideally suited to your specific controls and compliance needs, systems and protocols. CaseWare Monitor improves compliance and controls through customizable business rules and automated alerts. Additionally, it grows and evolves with your business, delivering enterprise-wide monitoring and the ability to identify and remedy issues systematically as you go. Key Capabilities One Single Controls Portal Simple, easy to use interface provides enterprise-wide definition and monitoring of controls Dashboard views of controls are displayed according to variables such as enterprise, process and users Key Performance Indicators available showing business success and return on investment Supports Existing Systems Supports any business process on any system and data from any source, without additional infrastructure Integrates easily with existing scripting tools such as IDEA, ACL and Arbutus Allows access to and monitoring of data from ERPs, bespoke apps, systems logs, telecom switches, external databases, legacy systems, data collection agents, and more Parameter Management Business rules and controls are customizable and new logic can be built by users Analytics can be easily modified, automated, and repeated as needed Total Exception Management Leverages existing exception reports by integrating them into the framework Enables you to implement existing CaseWare applications or create your own Built-In Workflow and Notification Fully customizable workflows Facilitates assignment, approval and escalation Notification delivered via SMS and Provides seamless management of false positives

7 Data From any Source ERPS BESPOKE APPS SYSTEM LOGS TELECOM SWITCHES EXTERNAL DATABASES LEGACY SYSTEMS CONSOLIDATED VIEW Extract, transform and load using established tools CONTROL AND BUSINESS RULES Applied using parameters and scripts GENERATE EXCEPTIONS Control breaches and suspicious transactions Executives Engineering Finance Audit and Compliance Sales and Marketing IT Board of Directors Business Units Enterprise-wide Management of Exceptions Exception Management Deadlines Escalation Automatic detection of resolved issues Business Logic Elimination of false positives Fine tuning of results and parameters Enterprise View Organizational view of risks and controls Comparative analysis Alert Systems SMS and For info, action or oversight The Monitor Concept

8 The Case for CaseWare The Scenario While her supervisor is on vacation, a cashier is given permission to approve higher discounts than normally permitted. Her supervisor returns, and IT reassigns her to a Cashier role, but fails to remove the Supervisor permissions. Normal discounts are below 5% and amounts are below $100, but she is now able to both enter and approve excessive discounts at the point of sale. It takes an average of 342 days to detect a fraud, at which point 89% of all proceeds are unrecoverable. KPMG Fraud Survey

9 Without Continuous Monitoring How could this go undetected? There is nothing overtly suspicious about her activities The security guard at the door cannot check prices She is only abusing a tiny fraction of her transactions Her till consistently reconciles at the end of day Day 0 Day 1 Day 2 Day 3 Day 4 Day 5 IT reassigns Cashier role She realizes that she can approve discounts Continues to approve small legitimate discounts (2-5%) Approves a 40% discount for a friend Approves a 50% discount for her brother Approves a 70% discount for her brother Lost $0 Lost $0 Lost $800 Lost $2,400 Lost $7,300 Month 6 Lost over $300,000 With CaseWare Monitor Timely action prevents losses Continuous monitoring detects control breakdowns Automatic alerts are sent to Store Manager If unresolved, Loss Prevention Officer alerted Both are able to intervene and prevent huge losses Day 0 Day 1 Day 2 Day 3 Day 4 Day 5 IT reassigns Cashier role She realizes that she can approve discounts Continues to approve small legitimate discounts (2-5%) Business as usual Business as usual Business as usual Lost $0 Lost $0 Lost $0 Lost $0 Lost $0 Detect Correct Protect Alert # 1 Store Manager Segregation of Duties violated. No Action Taken Alert # 2 Escalation: Loss Prevention Officer System Abuse same user creating and approving discount. I.T. ALERTED. Cashier s privileges revoked Time and money saved

10 An Open Framework The Choice is Yours CaseWare Monitor s open design allows you to implement our solutions, or create your own customized monitors using established scripting tools. With these tools and CaseWare s open framework, organizations can monitor any control within any business process. Flexibility and Freedom This approach gives organizations the freedom and structure to script the basic logic according to specific organizational needs, while the framework handles everything else. For example, to monitor the creation of overtime claims in excess of the number of work hours in the period, the script writer can apply a simple logic of OvertimeClaim > HoursInPeriod. We Do the Rest After simple logic is scripted, CaseWare Monitor handles the remaining stages, including: When and how often the data is to be monitored Who is to be notified and how The risk level associated with the control exception Who is responsible for resolving the issue and in what timeframe Who the exception is to be escalated to, if unresolved

11 CaseWare Monitor can monitor data from any source including ERPs, legacy apps, system logs, telecom switches, data collection agents, etc. STEP 1 Identify Key Controls & Data to be Monitored Design Tests Design tests using any data query service or easily implement pre-configured tests via CaseWare Monitor Apps. STEP 2 STEP 5 Monitor resolution of all issues. Use the workflow management and dashboards to manage and document issue resolution, report to appropriate levels of management and enhance control systems. Monitor all Issues to Enhance Controls STEP 4 Receive Issues and Alerts Receive issues via dashboards, notifications and alerts (SMS and ). Schedule Tasks & Process Configuration Schedule Task Management, automation of data analysis and process configuration. Set scheduling and issues distribution. STEP 3 Open Framework

12 Innovation, Vision and Value About CaseWare Leaders In: Paperless Engagements Smarter Auditing Founded in 1988, CaseWare is an industry leader in providing technology solutions for finance and accounting, governance, and risk and audit professionals. With over 250,000 users in 130 countries and 16 languages, CaseWare products deliver tremendous value across industries and continents. Next-Level Reporting Data Analysis Continuous Monitoring Practice Management Value-Added Services Proven Success Our customers include Big Four and other major accounting firms, as well as Fortune 500 and Global 500 companies with an overall renewal rate exceeding 90%. Governments with 9 of the 15 largest economies use our technologies to provide assurance on spending and taxation compliance. A Leader in Continuous Controls Monitoring CaseWare continues to redefine the continuous controls monitoring space with its flagship product, CaseWare Monitor, providing a simple, reliable solution for organizations around the world Blair Place, Suite 400 Ottawa, Ontario, Canada K1J 9L8 Phone: ext. 712 Fax: rcmsales@caseware.com Copyright 2011 CaseWare RCM Inc. All rights reserved. No part of this manual may be transmitted, in any form or by any means (photocopying, electronic, mechanical, recording or otherwise) or reproduced, stored in a retrieval system, without permission in writing from the publisher. All trademarks are the property of their respective companies.