▪ www.ferf.org ▪ ▪ identify topics of interest ▪ perform impartial research ▪ circulate results on financial topics ▪ Headquarters Office: 1250 Headquarters Plaza | West Tower, 7 th Floor | Morristown, NJ 07960 Phone: 973.765.1000 ® Slide 1 The Benefits of Continuous Monitoring Presented by Michael Cangemi and Bill Sinnett
21
Embed
▪ ▪ ▪ identify topics of interest ▪ perform impartial research ▪ circulate results on financial topics ▪ Headquarters Office: 1250 Headquarters.
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
▪ www.ferf.org ▪
▪ identify topics of interest ▪ perform impartial research ▪ circulate results on financial topics ▪
Headquarters Office: 1250 Headquarters Plaza | West Tower, 7th Floor | Morristown, NJ 07960
Phone: 973.765.1000®
Slide 1
The Benefits ofContinuous Monitoring
Presented by
Michael Cangemi andBill Sinnett
▪ www.ferf.org ▪
▪ identify topics of interest ▪ perform impartial research ▪ circulate results on financial topics ▪
Headquarters Office: 1250 Headquarters Plaza | West Tower, 7th Floor | Morristown, NJ 07960
Phone: 973.765.1000®
Slide 2
Agenda
Definitions Companies Company Initiatives Key Findings
▪ www.ferf.org ▪
▪ identify topics of interest ▪ perform impartial research ▪ circulate results on financial topics ▪
Headquarters Office: 1250 Headquarters Plaza | West Tower, 7th Floor | Morristown, NJ 07960
Phone: 973.765.1000®
Slide 3
InteractionProviding local and international forums for connecting you with your peers;
InformationProviding you with insight to assist in informed business decisions;
FEI’S MISSIONFEI’s mission is to advance the success of senior-level financial executives, their organizations and the profession. Since 1931, FEI has been connecting members through:
InfluenceProviding authoritative representation for your interests;
Integrity Providing the tools to advance the profession through ethical leadership.
▪ www.ferf.org ▪
▪ identify topics of interest ▪ perform impartial research ▪ circulate results on financial topics ▪
Headquarters Office: 1250 Headquarters Plaza | West Tower, 7th Floor | Morristown, NJ 07960
Phone: 973.765.1000®
Slide 4
Financial Executives Research Foundation (FERF) is the non-profit 501(c)(3) research affiliate of FEI. For more than 65 years FERF researchers identify key financial issues and develop impartial, timely
research reports for FEI members and non-members alike, in a variety of publication formats. The Foundation relies primarily on voluntary tax-deductible contributions from corporations, chapters, and
individuals.
Proceeds from purchases made through the
bookstore on the FEI website benefit FERF.
FERF Bookstore
www.ferf.org
▪ www.ferf.org ▪
▪ identify topics of interest ▪ perform impartial research ▪ circulate results on financial topics ▪
Headquarters Office: 1250 Headquarters Plaza | West Tower, 7th Floor | Morristown, NJ 07960
Phone: 973.765.1000®
Slide 5
Finance & Information Technology NewsA quarterly electronic newsletter covering IT issues that affect financial executives.
IOU: Insights, Observations and Updates A quarterly e-newsletter offering members insights, observations and updates from K Street to Wall Street.
FEI Executive Edge Executive Edge is a monthly e-newsletter that will keep you up-to-date with events and development sessions offered by FEI.
FEI e-Newsletters
FEI Express (Public & Private) FEI Express is where members find out on a weekly basis the latest “scoop” on industry trends, regulatory updates, and technical issues. FEI members can subscribe to the public edition, the private edition, or both.
▪ www.ferf.org ▪
▪ identify topics of interest ▪ perform impartial research ▪ circulate results on financial topics ▪
Headquarters Office: 1250 Headquarters Plaza | West Tower, 7th Floor | Morristown, NJ 07960
Phone: 973.765.1000®
Slide 6
Continuous Auditing
CA is an automated, ongoing process that enables internal audit to: Collect from processes, transactions, and accounts data that supports
internal and external auditing activities Achieve more timely, less costly compliance with policies, procedures,
and regulations Shift from cyclical or episodic reviews with limited focus to continuous,
broader, more proactive reviews Evolve from a traditional, static annual audit plan to a more dynamic plan
based on CA results
▪ www.ferf.org ▪
▪ identify topics of interest ▪ perform impartial research ▪ circulate results on financial topics ▪
Headquarters Office: 1250 Headquarters Plaza | West Tower, 7th Floor | Morristown, NJ 07960
Phone: 973.765.1000®
Slide 7
Continuous Monitoring
CM is an automated, ongoing process that enables management to: Assess the effectiveness of controls and detect associated risk issues Improve business processes and activities while adhering to ethical and
compliance standards Execute more timely quantitative and qualitative risk-related decisions Increase the cost-effectiveness of controls and monitoring through IT
solutions
▪ www.ferf.org ▪
▪ identify topics of interest ▪ perform impartial research ▪ circulate results on financial topics ▪
Headquarters Office: 1250 Headquarters Plaza | West Tower, 7th Floor | Morristown, NJ 07960
Phone: 973.765.1000®
Slide 8
Companies
American Electric Power Blue Cross/Blue Shield of North Carolina CME Group (Chicago Mercantile Exchange Group) Hallmark Cards (Privately-Held) Hewlett Packard IBM Intel Corporation
▪ www.ferf.org ▪
▪ identify topics of interest ▪ perform impartial research ▪ circulate results on financial topics ▪
Headquarters Office: 1250 Headquarters Plaza | West Tower, 7th Floor | Morristown, NJ 07960
Phone: 973.765.1000®
Slide 9
Companies (Continued)
JC Penney Microsoft Corporation United Technologies Corporation Wells Fargo
▪ www.ferf.org ▪
▪ identify topics of interest ▪ perform impartial research ▪ circulate results on financial topics ▪
Headquarters Office: 1250 Headquarters Plaza | West Tower, 7th Floor | Morristown, NJ 07960
Phone: 973.765.1000®
Slide 10
American Electric Power
CM Initiatives A/P uses Oversight Systems to monitor for duplicate payments Other CM efforts are defined by business process owners
Why They Do It Operational Effectiveness: Reduce Expenses
CM Enablers Oversight Systems
▪ www.ferf.org ▪
▪ identify topics of interest ▪ perform impartial research ▪ circulate results on financial topics ▪
Headquarters Office: 1250 Headquarters Plaza | West Tower, 7th Floor | Morristown, NJ 07960
Phone: 973.765.1000®
Slide 11
Blue Cross/Blue Shield of North Carolina
CM Initiatives Audit has developed CAMP for use in three areas Claims monitoring, Medicare and A/P
Why They Do It Operational Efficiency: Detection of duplicate payments Compliance Effectiveness: Comply with Medicare
CM Enablers Continuous Auditing & Monitoring Program (CAMP) CAMP developed in-house by Audit
▪ www.ferf.org ▪
▪ identify topics of interest ▪ perform impartial research ▪ circulate results on financial topics ▪
Headquarters Office: 1250 Headquarters Plaza | West Tower, 7th Floor | Morristown, NJ 07960
Phone: 973.765.1000®
Slide 12
CME Group
CM Initiatives Globex is used for surveillance of clearing firms and trades History Replay Injector (HRI) tests transaction controls Global Command Center diagnoses market anomalies
Why They Do It Compliance Effectiveness: CFTC (Globex) and SOX (HRI)
CM Enablers Globex, HRI and Global Command Center developed in-house by
Audit
▪ www.ferf.org ▪
▪ identify topics of interest ▪ perform impartial research ▪ circulate results on financial topics ▪
Headquarters Office: 1250 Headquarters Plaza | West Tower, 7th Floor | Morristown, NJ 07960
Phone: 973.765.1000®
Slide 13
Hallmark Cards
CM Initiatives Check data quality and automate account reconciliations
Why They Do It Operational Efficiency Assure that key controls applied consistently Identify process pain points
CM Enablers Back Office Associates SAP GRC Blackline
▪ www.ferf.org ▪
▪ identify topics of interest ▪ perform impartial research ▪ circulate results on financial topics ▪
Headquarters Office: 1250 Headquarters Plaza | West Tower, 7th Floor | Morristown, NJ 07960
Phone: 973.765.1000®
Slide 14
Hewlett Packard
CM Initiatives Monitor data from various perspectives to detect outliers
Why They Do It Operational Efficiency
CM Enablers Internal Audit has developed a set of tools to monitor data
▪ www.ferf.org ▪
▪ identify topics of interest ▪ perform impartial research ▪ circulate results on financial topics ▪
Headquarters Office: 1250 Headquarters Plaza | West Tower, 7th Floor | Morristown, NJ 07960
Phone: 973.765.1000®
Slide 15
IBM
CM Initiatives Monitor expense reimbursement and procurement
Why They Do It Operational Efficiency To identify and remediate control deficiencies as they occur To provide continuous confirmation of control health To reduce need for manual testing
CM Enablers Risk Compliance and Analysis Tool (RCAT) developed by Internal
Audit
▪ www.ferf.org ▪
▪ identify topics of interest ▪ perform impartial research ▪ circulate results on financial topics ▪
Headquarters Office: 1250 Headquarters Plaza | West Tower, 7th Floor | Morristown, NJ 07960
Phone: 973.765.1000®
Slide 16
Intel
CM Initiatives Global Accounts Payable Monitoring done by “Controls Group” of 10 FTEs
Why They Do It Operational Efficiency: Reduce expenses
CM Enablers Global Accounts Payable uses an internally developed program
▪ www.ferf.org ▪
▪ identify topics of interest ▪ perform impartial research ▪ circulate results on financial topics ▪
Headquarters Office: 1250 Headquarters Plaza | West Tower, 7th Floor | Morristown, NJ 07960
Phone: 973.765.1000®
Slide 17
Microsoft
CM Initiatives Accounts Payable and Financial Close
Why They Do It Operational Efficiency: Reduce expenses Compliance Effectiveness: Provide transparency
CM Enablers Technology Enabled Continuous Audit (TECA) for A/P Controller Workspace for financial processes After the Fact samples controls on a monthly basis
▪ www.ferf.org ▪
▪ identify topics of interest ▪ perform impartial research ▪ circulate results on financial topics ▪
Headquarters Office: 1250 Headquarters Plaza | West Tower, 7th Floor | Morristown, NJ 07960
Phone: 973.765.1000®
Slide 18
JC Penney
CM Initiatives The Audit Technology Group (ATG) uses a full suite of tools to
deliver Web applications Why They Do It
Audit assists management in addressing potential controls gaps and efficiency opportunities
CM Enablers STAR (Store Assessment Review) provides exception reports Inventory Management and Selling Strategy Measurements
monitors operation effectiveness
▪ www.ferf.org ▪
▪ identify topics of interest ▪ perform impartial research ▪ circulate results on financial topics ▪
Headquarters Office: 1250 Headquarters Plaza | West Tower, 7th Floor | Morristown, NJ 07960
Phone: 973.765.1000®
Slide 19
United Technologies Corporation
CM Initiatives UTC’s Center of Excellence wants to eliminate duplicate
payments Why They Do It
Operational Efficiency: Reduce expenses CM Enablers
Oversight Systems UTC uses 4 out of possible 110 Integrity Checks offered by
Oversight
▪ www.ferf.org ▪
▪ identify topics of interest ▪ perform impartial research ▪ circulate results on financial topics ▪
Headquarters Office: 1250 Headquarters Plaza | West Tower, 7th Floor | Morristown, NJ 07960
Phone: 973.765.1000®
Slide 20
Wells Fargo
CM Initiatives Community Banking monitors KRIs at “stores” Commercial Banking monitors KRIs at “offices”
Why They Do It Operational Efficiency: Reduce time and travel Compliance Effectiveness: Improve control environment
CM Enablers Community Banking Audit developed KRIs for “stores” Commercial Banking Audit developed Continuous Audit Program
▪ www.ferf.org ▪
▪ identify topics of interest ▪ perform impartial research ▪ circulate results on financial topics ▪
Headquarters Office: 1250 Headquarters Plaza | West Tower, 7th Floor | Morristown, NJ 07960
Phone: 973.765.1000®
Slide 21
Key Findings
Companies recognize the importance of Continuous Monitoring CM initiatives require commitment of resources
Internal staff time Purchase of software tools
CM initiatives need a Champion at senior level Internal Audit is often the CM Champion There are many CM software tools available