Sox Lite Presentation

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Programme developed to Optimise Sarbanes Oxley controls and maximise related Cost Savings

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Sox Lite Presentation

  1. 1. MP Consulting <ul><li>SOX “Lite” </li></ul><ul><li>Optimisation Programme </li></ul>
  2. 2. Contents <ul><li>Issues </li></ul><ul><li>Solution </li></ul><ul><li>ACES Method </li></ul><ul><li>Savings and Benefits </li></ul>
  3. 3. Issues <ul><li>Sarbanes Oxley (“SOX”) based controls were implemented with the intention of imbedding a comprehensive control environment in order to comply with SOX requirements </li></ul><ul><li>As time progressed, the cost of maintaining the imbedded controls has been significant and has imposed a “Heavy” burden on the business </li></ul><ul><li>Valuable Employee time and efforts have been used to maintain redundant controls instead of focusing on the business </li></ul><ul><li>Internal and External auditors have devoted excessive time on testing controls that do not contribute significantly to the overall control environment </li></ul>
  4. 4. Solution <ul><li>The SOX “Lite” Optimisation Programme has been developed to assist entities to reduce: </li></ul><ul><ul><li>Overall cost of Sarbanes Oxley compliance </li></ul></ul><ul><ul><li>Number of controls performed by employees </li></ul></ul><ul><ul><li>Testing efforts by both Internal and External auditors </li></ul></ul><ul><ul><li>Use of manual controls by implementation of automated controls </li></ul></ul>
  5. 5. ACES Method <ul><li>A ggregate and A nalyse </li></ul><ul><li>C onsolidate </li></ul><ul><li>E liminate </li></ul><ul><li>S ustainability </li></ul>
  6. 6. Aggregate and Analyse <ul><li>All existing controls in the company are aggregated for review </li></ul><ul><li>A preliminary analysis is performed to determine which controls are truly “Key” and which controls do not significantly contribute to the overall control environment </li></ul>
  7. 7. Consolidate <ul><li>After Key controls are identified, opportunities for consolidation are developed to determine where the controls should reside in the Company (i.e. More reliance on Company-Level controls rather than Local Unit controls) </li></ul>
  8. 8. Eliminate <ul><li>Non-Key controls are reviewed for possible elimination if they do not add any value to the overall control environment </li></ul><ul><li>Testing of remaining Non-Key controls is eliminated based on review </li></ul><ul><li>Development of automated controls where possible to eliminate need for manual controls </li></ul>
  9. 9. Sustainability <ul><li>Implementation of “Must Have” Controls at all Local Units combined with Self-Assessments contribute to the sustainability of a solid internal control environment </li></ul>
  10. 10. Savings and Benefits <ul><li>Overall cost of SOX compliance is reduced due to monitoring of less controls </li></ul><ul><li>Employees can focus more time on business issues rather than perform mundane tasks that add little value </li></ul><ul><li>Internal and External auditors test less which reduces disruption of day-to-day operations </li></ul>
  11. 11. For further information please contact: <ul><li>Michael Potorti CPA </li></ul><ul><li>Director </li></ul><ul><li>MP Consulting </li></ul><ul><li>[email_address] </li></ul><ul><li>Tel. : +44 (0)7914 191455 </li></ul>

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