The Financial Controls Monitoring use case is an integrated platform for assessing and reporting on the performance of financial controls across all enterprise asset levels as required by Sarbanes-Oxley (SOX) and similar financial regulations. Organizations can address challenges in assessing and reporting financial controls with the following tasks:
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Managing Roles and Responsibilities
The Roles and Responsibilities application enables you to link various tasks and Process Narratives to key roles within the Financial Controls Management program. Users or groups are associated with the roles. This application uses roles instead of individuals because individuals may change positions frequently in an organization, whereas roles do not change as often.
The following diagram shows the Roles and Responsibilities application tasks.
Download the source file of the diagram here: Financial Controls Monitoring Roles and Responsibilities Diagram
Managing PBC Documentation Requests
Use the PBC Documentation Requests application to manage PBC Request records that are filed for documenting and reviewing Provided By Client (PBC) lists. Auditors frequently request PBC lists during the audit preparation phase. PBC lists are regularly updated during the audit process and include requested supporting documents that auditors need from clients, such as policies, reports, and so on. Auditors also use the PBC lists to begin fieldwork tests and understand the controls and processes within scope. Auditors can add new requests to the PBC list as needed for the audit.
The following diagram shows the PBC Documentation Requests application tasks.
Download the source file of the diagram here: Financial Controls Monitoring PBC Documentation Requests Diagram
Managing Process Narratives
The Process Narratives application documents the major financial flows and processes affecting key financial reporting elements. Narrative steps provide granular detail for the process narratives by aggregating the roles, controls, business processes, and general ledger accounts that apply to each step. The SOX PMO Officer reviews the process narratives and creates Process Narrative Walkthroughs after approval. Other actions for process narratives include PCO validation and deprecation.
The following diagram shows the Process Narratives application tasks.
Download the source file of the diagram here: Financial Controls Monitoring Process Narratives Diagram
Managing Approved Process Narratives
After you approve a Process Narrative, additional actions become available for the approved Process Narratives record. You can initiate a walkthrough assessment with the Process Narrative Walkthrough questionnaire. The walkthrough assessment is part of the 302 certification process. You can implement a change request to update an approved Process Narratives record. You can also deprecate a Process Narratives record to archive a Process Narrative that is no longer in use.
Processing a 302 Certification
To comply with section 302 of SOX, you must regularly certify the presence and validity of internal controls. You can use the 302 Certification questionnaire to meet SOX compliance as well as similar regulations.
The following diagram shows the 302 certification tasks.
Download the source file of the diagram here: Financial Controls Monitoring Processing 302 Certification Diagram
Managing Change Requests
You can use the Change Requests application to process and review update requests for completed or approved records in policies, control standards, control procedures, process narratives, and the evidence repository. The Change Requests application also enables you to process and review new record requests for the 5 content types.
The following diagram shows the tasks to manage change requests.
Download the source file of the diagram here: Financial Controls Monitoring Managing Change Requests Diagram
Auditing General Ledger Accounts
The G/L Accounts application serves as a repository of general ledger accounts for each business unit.
You can calculate that account's risk by completing an assessment. The assessment provides you with Archer's valuation of the account's risk; you may choose to override this risk assessment.
The following diagram shows the tasks to manage General Ledger accounts.
Download the source file of the diagram here: Financial Controls Monitoring Auditing General Ledgers Diagram
Processing a General Ledger Assessment
The General Ledger Risk Assessment targets the G/L Accounts application and is used to evaluate the potential risk that a G/L Account may present.
The following diagram shows the tasks to manage a General Ledger Risk Assessment.
Download the source file of the diagram here: Financial Controls Monitoring General Ledgers Assessment Diagram
Managing the Operating Effectiveness Testing Package
The Operating Effectiveness Testing Package application provides a workflow for operating assessment tests. Reviewers use the same application to approve test results. The application tracks the results by using records in the Operating Test Results application. The results of the operating tests group with related Control Procedures record to complete 302 Certification questionnaires.
The following diagram shows the tasks to manage the Operating Effectiveness Testing Package application.
Download the source file of the diagram here: Financial Controls Monitoring Operating Effectiveness Testing Package Diagram
Completing Quarterly Financial Certifications
Financial Controls Monitoring provides the Quarterly Financial Certification - Company questionnaire to certify financial results at the highest level of the organization. After the stakeholders complete and validate the results, the Principal Financial Officer submits the questionnaire, which the Principal Executive Officer reviews and either approves or rejects.
The Quarterly Financial Certification - Company questionnaire is based off guidance that the Sarbanes-Oxley Section 302 provides. The principal executive officers and principal financial officers must provide several certifications in association with each annual or quarterly report that is filed with the SEC.
The following diagram shows the tasks to for completing the quarterly financial certifications.
Download the source file of the diagram here: Financial Controls Monitoring Quarterly Financial Certifications Diagram
