Corporate Governance, internal controls

  • Sarbanes Oxley (SOX)
    • implementation
    • management
    • transformation

ORGANISATION

  • Global Industrial Battery Producer – $2Bn revenue, 9000 FTEs

project SCOPE

  • Company just started to be quoted on NYSE and therefore SOX implementation was required.:
  • full implementation in production entities EMEA & APAC transformation form project to process (YEAR 2)

project GEOGRAPHY

EUROPE, ASIA PACIFIC (APAC)
Full scope: UK, France, Italy, Germany, Poland, Bulgaria, China, Singapore, Japan, Australia (+ 30 local limited scope)

FINDINGS

  • no SOX methodology,
  • weak corporate governance culture
  • non standardized and weak internal control systems
  • lack of control risk management:
    • documentation
    • testing
    • analysis

CHALLENGES

  • project complexity (6 entities full scope + 30 entities limited scope in EMEA)
  • lack of understanding by both staff and management
  • time constraints, delay on starting point
  • resistance to change
  • SCOPE extended in the middle of the process (APAC – 4 entities full scope)

ACTIONS

  • planning (incl. roadmap)
  • top management involvement
  • consulting approach with global accounting firms/certifier (EY)
  • collecting data, understanding of processes, walk-throughs, testing
  • documentation and evidence
  • hiring local testers to speed up the process
  • communication management
  • transition of SOX from project to process after 1st year

DELIVERABLES

  1. SOX implemented & assessed – efficient
    • SOX properly implemented without material discrepancies found by EY (certifier)
  2. SOX transformation into process
    • Project transformed onto standarised SOX process, ensuring sustainability of the regulatory compliance
  3. $500k/y – cost reduction
    • Reduction of the key controls number (from avg 300 to avg 100 only) and therefore reduction of projects costs (-$500k) per year
  4. Efficient ICM dep’t (Internal Controls)
    • Perfectly functioning and efficient ICM department, smoothly managing SOX process, but also used to permanent improvement of controls environment

EXPERTISE APPLIED

Risk Managment

  • risk identification and evaluation
  • promoting risk approach culture

Strategic Planning and Vision

  • internal controls (design, implementation, monitoring)
  • frameworks standards (PCAOB, COSO, COBIT)
  • SOX/RCM (Risk Controls Matrix): implementation, management, transition
  • business process: (assessment, streamlining, simplification, permanent monitoring)
  • process documentation (narratives, workflows, walkthroughs, testing): O2C, P2P,
  • R2R, others

Audit and Assurance

  • audit procedures (sampling, sampling, testing, walk-through, documentation, investigation)
  • IT audit procedures (general IT controls)

Project management

  • proper process planning
  • roadmaps preparation and execution
  • efficient resources allocation

DOWNLOAD FILE

Corporate governance – Sarbanes Oxley (pdf) – less than 1MB

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