Extraction of SAP Data for Audit & Compliance

Transcription

1 Extraction of SAP Data for Audit & Compliance LiveCompare Case Study David Barkhausen 20 November 2012

2 Contents Key Learning Points British American Tobacco Overview Audit Challenges Addressing The Challenges Benefits Realisation Considerations For Your Own CAATs Initiatives Questions & Additional Resources

3 Key Learning Points

4 Take-Aways Understand challenges associated with auditing and data analytics in complex SAP environments. Use of ETL (Extract, Transform, Load) technology to support computer assisted audit techniques (CAATs) Associated benefits and return on investment. Considerations for your own CAATs initiatives.

5 British American Tobacco - Company Overview - Our SAP Landscape - Global Audit Function

6 Company Overview World s second largest quoted tobacco group by global market share, with brands sold in around 180 markets. FTSE 10 company, market capitalisation of 62 billion. Annual turnover of 46 billion brands in our global portfolio. In 2011, our group companies sold 705 billion cigarettes. Employ approximately 56,000 people worldwide.

7 Our SAP Landscape Current model of operation Key regional R/3 instances: Europe, Southern Africa, Africa & Middle East, Asia-Pacific, Australia, Latin Americas & Canada Separate R/3 instances for some global functions: Treasury, Global Leaf Processing, BAT International. Separate R/3 instances for acquired entities: Denmark, Indonesia, Columbia. Future model of operation Global instance of ECC (out of scope for this presentation)

8 Global Audit Function Global function comprising of approximately 110 people. Centrally controlled with regional offices; sub-groups for Finance, Operations, Marketing, Projects & Programmes and IT. Globally, we conduct more than 100 audits each year. Work closely with our external auditors, as well as internal compliance functions (e.g. Business Controls, SAP GRC, IT Security). Developed a mature data analytics function within IT Audit team.

9 Audit Challenges - Limited Resources - Data Extraction

10 Limited Resources Complex SAP landscape with high volume of transactions. Traditional audit sampling techniques and manual reviews are ineffective and inefficient. Deliver more, with less. Budgets and people assets are small relative to the task at hand. Data analytics is a key enabler to help address these items. But it comes with its own set of challenges

11 Data Extraction Manual extraction (SE16N or SQVI) an option, but not viable. Requests to IT for data are always fun, especially when there s deadlines. Dealing with text files is tedious and creates data integrity risks. Data volumes in our systems are huge, making for slow dumps and transfers due to file size. Independence concerns.

12 Addressing The Challenges - ETL As An Enabler - LiveCompare Overview - Our Analytics Landscape

13 ETL As An Enabler Allowed us to place less reliance on manual process and other functions for data. Automation of the data extraction process allows for a more timely process and better scheduling of resources. Ensures completeness and accuracy of the data. Reduced the need for data transformations and control total reconciliations. Expanded our capabilities beyond existing audit areas and capabilities.

14 LiveCompare by IntelliCorp SAP lifecycle optimisation tool. Allows for the analysis of all objects, tables and changes for comparison and impact assessment. We initially focused on the tool s Read SAP Table to read data from the underlying tables. Working closely with IntelliCorp, this evolved to include a Read Large SAP Table function which makes it possible to read millions of rows of data from SAP with minimal impact on system resources. Other audit capabilities which allow us to further automate testing and perform continuous controls monitoring.

15 Our Analytics Landscape

16 Our Analytics Landscape (cont.) LiveCompare workflows and reports

17 Our Analytics Landscape (cont.) LiveCompare workflows and reports

18 Our Analytics Landscape (cont.) LiveCompare workflows and reports

19 Benefits Realisation - Benefits and ROI - SAP Utilisation Metrics

20 Benefits and ROI Reduced time and effort to extract data. Become a background process. More than 100 man-hours saved per month. More focus spent on CAATs development and enhancing audit capabilities and efficiency. Greater reliance on our work by external auditors. Easy to roll-out to other systems. Expanded capability from initial five instances to twelve in two years. Facilitates ad-hoc audits as well as continuous monitoring. Led to CAATs being integrated into our Business Audit Methodology.

21 SAP Utilisation Metrics Business readiness initiative for our future operating model using a single ERP instance globally. A series of 53 metrics, reported through dashboards, used to highlight inconsistent and poor usage of SAP relative to our Global Process Standards. Metrics are automatically calculated using CAATs and the data extracted using LiveCompare. Examples of metrics include: - Retrospective purchase orders - FI invoices against PO vendors - Overdue sales orders - Master data duplicates

22 SAP Utilisation Metrics Excerpt from recent SAP-U newsletter. Large proportion of end markets were red less than one year ago!

23 Considerations For Your Own CAATs Initiatives - Considerations - Advice From Experience

24 Considerations Maturity of compliance functions and data analytics capabilities. IT environment complexity. Timeframes for ETL deployment and CAATs development. Align with business and IT strategies.

25 Advice From Experience Embrace change and take advantage of technologies capable of automating manual/repetitive tasks. Look for integrated technologies that can be rapidly deployed and utilised. Leverage existing ETL capabilities within your business where possible. Keep an eye on the future and emerging trends (applicable to risks and technology) Network at events such as this one. Find out as much as you can!

26 Questions & Answers

27 Additional Resources Contact the presenter: - David_Barkhausen@bat.com BAT business case on LiveCompare website -