Continuous Transaction Monitoring
This presentation is the property of its rightful owner.
Sponsored Links
1 / 30

Continuous Transaction Monitoring PowerPoint PPT Presentation


  • 72 Views
  • Uploaded on
  • Presentation posted in: General

Continuous Transaction Monitoring. Introductions. Oversight Systems Patrick Taylor, CEO Mark Converse, Director, Sales/Business Development Stephen Barbarisi, Regional Sales Director. Internal Audit Trends. 2009. 2010. Cost of Compliance Focus Resource reductions (25%)

Download Presentation

Continuous Transaction Monitoring

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Continuous transaction monitoring

Continuous Transaction Monitoring


Introductions

Introductions

Oversight Systems

Patrick Taylor, CEO

Mark Converse, Director, Sales/Business Development

Stephen Barbarisi, Regional Sales Director


Internal audit trends

Internal Audit Trends

2009

2010

  • Cost of Compliance Focus

  • Resource reductions (25%)

  • Outsourcing considered

  • Technology leverage considered… delayed

  • Value Creation/

  • Continuous Improvement

  • Internal Audit: Fact-based, data-driven

  • IA: Advise the “business”

  • IA: “Enable” the business

  • Increased Board Activity

  • Overall risk exposure

  • Specific risk “initiatives”

  • Automate “Low Value” Tasks

  • “More with less…”

  • Focus on high value, bottom line results

  • Leverage advanced technology


Why continuous transaction monitoring

Why Continuous Transaction Monitoring?

  • Compliance Benefits/

  • Risk Improvement

  • “In-process, real-time” controls

    • Extend existingsystem controls

    • Replace, automate post transaction audits

  • Gain visibility/accuracyinto business

    • Policies

    • Stakeholder behaviors

    • Process improvement

    • Financial accuracy

  • Audit Automation

    • Expanded use of data analytics

    • Detect fraud early

  • OperationalBenefits

  • Deliver bottom-line results

  • Automate “lower value” tasks

    • Auditing/QA

    • Account reconciliations

  • Real-time continuous improvements

  • Detect issues early

    • Errors

    • Bottom-line/cash flow improvement opportunities

    • Waste, abuse

  • Establish a “detection adjudication/resolution” capability


Fraud statistics

Fraud Statistics

Typical organization loses 5% of revenues to fraud

  • Median loss $160K, 25% of loses >$1M

  • Significantly higher for financial statement fraud, median >$4M

    Asset misappropriation the most common

    Recovery is low, only 20% recover significant amounts of losses

    Controls work: organizations with more robust fraud controls had lower losses

    85% of perpetrators have never been charged before

    13% of employees will steal if given the opportunity

Source: ACFE 2010 Report to the Nation


Other relevant statistics

Other Relevant Statistics

1.6% of vendor payments have errors

  • Similar for companies with a high degree of automation

    3.6% of vendor invoices contain errors

    Companies average 1.1% error rates in T&E

    Invoice input error rates – average 15.6%

    43% of companies never clean Vendor Master File

  • Leads to other issues: fraud, duplicate payments, missed discounts

    Duplicate payments are still a problem

  • Approx 20% of companies report duplicate payment rate > 0.1%

    39% of companies had check fraud in past two years

  • 70% in large companies (> 5000 employees)

  • % is growing

Source: IOMA 2007 Benchmark Study


What value does oversight deliver

What Value Does Oversight Deliver?


What value does oversight deliver1

What Value Does Oversight Deliver?

  • Regulations

    • SOX

  • Best practices

    • COSO

    • GRC Program

  • Internal policies/ procedures

  • Audit Automation

  • Improper payment- real-time error prevention

    • Errors

    • Fraud/misuse

  • Un-recovered payments

  • Cost of capital

  • (Margin optimization)

  • Resource optimization

  • Error correction

  • Audit fees

  • Internal audit efficiency

  • 100% transaction review

  • Fraud

    • Employee

    • Vendor

  • Policy/procedures

    • Procurement

    • T&E

    • Corporate cards

  • Reporting reliability

  • Decision support

  • Automated testing/reporting

  • Transaction-level analytics

  • Process improvement


Ccm t application components

CCM-T Application Components

Example Transaction Process: Revenue Cycle

Disparate Source

Systems

CASH

RECEIPT

CUSTOMER

MAINTENANCE

SALES ORDER

CASH APPLICATION

RECEIVING

INVOICE

RMA/RETURNS

Legacy

SAP

SAP

HR Data

CCM-T Application

Data Extraction

  • Monitors Controls

  • Embeds Audit Best Practices in Process

  • Risk Ranking

Libraries of Data Analytics

Analytics Engine

UI and Workflow

Exception

Identification

Exception

Resolution

Documentation

Insights/

Reporting

Reporting


Representative monitoring value propositions

Representative Monitoring Value Propositions

Compliance/Risk

Financial Process

Hard ROI

  • Financial Reporting Accuracy

  • Inappropriate Employee Behavior

  • G&A Cost Efficiency

  • Audit Cost Reduction

General

Ledger

  • Policy Compliance

  • Error Reduction

  • Operational Controls/Visibility

  • Margin Improvement

  • G&A Efficiency

Orderto Cash

  • Policy Compliance

  • Error reduction

  • Operational Controls/Visibility

  • Inappropriate Employee Behavior

  • Prevent Cash Leakage

  • G&A Efficiency

Procureto Pay

  • Policy Compliance

  • PR Risks

  • Operational Controls/Visibility

  • Inappropriate Employee Behavior

  • Prevent Cash Leakage

  • G&A Efficiency

P-Card/T&E


Introduction to oversight systems

Introduction to Oversight Systems

  • The Company

  • Leader in continuous transaction monitoring

  • Software company

  • Headquartered inAtlanta, Georgia USA

  • Recognized by Forbes, “Big 4” and industrytrade associations

  • Best practices focusand approach

  • Continuous Transaction Monitoring

  • Automated, in-process

  • 100% transaction review & prioritization

  • Extracted from multiple data sources

  • Pre-defined monitors

  • Operational policy

  • Policy adjudication workflow

  • Financial transaction process monitoring

    • General Ledger Order to Cash

    • HR / Payroll Procure to Pay

    • PCard/T&E Custom


Continuous monitoring emerging best practice

Continuous Monitoring: Emerging Best Practice

Oversight Clients:Monitoring $500B+ Transactions


Continuous monitoring adoption

Continuous Monitoring Adoption

Finance & Accounting Functions


Procure to pay monitoring

Procure-to-Pay Monitoring

  • Payment for 0

  • Payment w/o Voucher

  • Payment Payee Differsfrom Vendor

  • Payment to Ghost Vendor

  • Payment to Employee

  • Payment Detail Mismatch

  • Payment/PO SOD

  • Payment Duplicate

  • Payment Line Duplicate

  • Payment Line Exceed Voucher

  • Payment Line w/o Voucher

  • Payment Line/Voucher Mismatch

  • Payment Line for Duplicate Voucher

  • Payment/Voucher SOD

  • Invalid Vendor

  • Duplicate Vendor

  • Ghost Vendor

  • Vendor Change/Change-back

  • Vendor Maintenance SOD

  • Receipt/PO SOD

  • Invalid Voucher

  • Voucher for 0

  • Voucher to Invalid Vendor

  • Voucher to Duplicate PO

  • Voucher Duplicate Amount

  • Voucher Duplicate Invoice

  • Voucher/PO SOD

  • Voucher Line with no PO

  • Voucher Line/PO Mismatch

  • Voucher Line/Receipt SOD

  • Voucher Line/Receipt Mismatch

  • Invalid PO

  • PO to Inactive Vendor

  • PO to Invalid Vendor

  • PO to Ghost Vendor

  • Duplicate PO

  • PO/Vendor SOD


Cash leakage procure to pay process

Cash Leakage: Procure to Pay Process

  • Accepted RiskBuilt into Design

  • Less than ideal segregationof duty to facilitate doing business

  • Quantity & pricing tolerances

  • Manual over-ride of controls

  • Subjective RFP process

  • Unintended Design Gaps

  • Lost volume discounts/rebates

  • Freight overpayments

  • Duplicate vendor payments

  • Approvals outside design tolerance

  • Over/under payment of S&U tax

  • Start-up and/or new configuration post go-live

  • Orders by-pass procurement

  • Incomplete/inaccuratemaster data

  • Fraud

  • Collusion

  • Single individual capitalizingon system weakness

  • Single individual manipulating data to mislead decision makers

  • Check theft / manual check

  • Errors and Inefficiencies

  • Lost payment terms discounts

  • Higher delivery costs

  • Catalog pricing not current

  • Manual processes

  • Multiple touches/parked invoices

  • Research


Card program monitoring

Card Program Monitoring

  • Transaction Duplicate

  • Transaction Chain Individual

  • Transaction Chain Department/BU

  • Transaction Invalid

  • Transaction Merchant Unauthorized

  • Transaction Merchant Suspicious

  • Transaction Amount Suspicious

  • Transaction Timing Suspicious

  • Transaction Limit Violation

  • Transaction Employee Invalid

  • Transaction Series

  • Cardholder Status Change

  • Cardholder Invalid

  • Cardholder Change

  • Cardholder Employee Invalid

  • Payment without Approval

  • Payment to Ghost Merchant

  • Payment to Employee

  • Merchant Distribution Mismatch

  • Distribution Timing Error

  • Transaction without Approval

  • Approval Override

  • Cardholder Multiple Cards

  • Card Limit Change

  • Card Excessive Limit

  • Card Invalid

  • Recon SOD

  • Transaction without Recon

  • Transaction withoutSubstantiation


T e and cards programs monitoring objectives

T&E and Cards Programs: Monitoring Objectives

  • Accepted RiskBuilt into Design

  • Less than ideal segregation of duty to facilitate doing business

  • Quantity & pricing tolerances

  • Manual over-ride of controls

  • Subjective RFP process

  • Unintended Design Gaps

  • Lost volume discounts/rebates

  • Freight overpayments

  • Duplicate vendor payments

  • Approvals outside design tolerance

  • Over/under payment of S&U tax

  • Start-up and/or new configuration post go-live

  • Orders by-pass procurement

  • Incomplete/inaccuratemaster data

  • Fraud

  • Collusion

  • Single individual capitalizingon system weakness

  • Single individual manipulating data to mislead decision makers

  • Check theft / manual check

  • Errors and Inefficiencies

  • Lost payment terms discounts

  • Higher delivery costs

  • Catalog pricing not current

  • Manual processes

  • Multiple touches/parked invoices

  • Research


Profit leakage order to cash process

Profit Leakage: Order to Cash Process

  • Accepted RiskBuilt into Design

  • Price overrides

  • Approval tolerances

  • Unintended Design Gaps

  • Pricing errors

  • Credit terms

  • Unit of measure

  • Free shipping not in contract

  • Wrong tax codes

  • Rebates

  • Incomplete/inaccuratemaster data

  • Fraud

  • Collusion

  • Single individual capitalizingon system weakness

  • Single individual manipulating data to mislead decision makers

  • Errors and Inefficiencies

  • Returns

  • Deductions

  • Authorized promotion deductions

  • Chargebacks

  • Penalties

  • Short shipments

  • Late payments

  • Write-offs

  • Slow dispute resolution


General ledger accuracy risk and compliance

General Ledger: Accuracy, Risk and Compliance

  • Access Controls

  • Unintended configuration gaps

  • Super-user access

  • Material transaction approval

  • Incomplete/Inaccurate Master Data

  • Period open – period close

  • Process Controls

  • Intercompany reconciliation

  • Month end close monitoring

  • Improve close efficiency accuracy

  • Fraud

  • Revenue manipulation

  • Overcapitalization

  • Understatement of liabilities

  • Super-user access

  • Errors and Inefficiencies

  • Duplicate entries

  • Entries posted “backwards”

  • Account code misclassification

  • Keying errors

  • Manual entry review

  • Internal/external audit preparation

  • Multiple touches required for multiple “customers”


Oversight overview

Oversight Overview


Oversight solution overview

Oversight Solution Overview


Ctm people process and technology

CTM: People, Process and Technology

Corporate

Finance

Operations

Internal Audit

BU3

BU4

CFO Office

Audit Committee

Finance

Finance Operations

BU1

Procurement

BU2

VP Finance

Operations

VP Operations

Finance

BU1

Procurement

BU2

Operations

Finance

Procurement

Operations


Oversight product capabilities

Oversight Product Capabilities

  • Reporting Capabilities

    • Oversight DashboardOversight Workbench

  • Exception Handling Capabilities

    • Discovery: Exception Detection

    • Workflow

    • Collaboration

    • Communication

    • Advanced Analytical Capabilities


Oversight macro trends generated automatically

Oversight: Macro Trends Generated Automatically


Oversight exception reporting

Oversight: “Exception” Reporting


Oversight exception reporting1

Oversight: “Exception” Reporting


Oversight exception detail

Oversight: “Exception” Detail


Oversight transaction detail provided

Oversight: Transaction Detail Provided


Why industry leaders choose oversight

Why Industry Leaders Choose Oversight

Key Attributes

Key Value

  • Multiple, diverse, systems

  • Normalize data into common model

  • No data volume limitation

  • Low impact on client system/network

Superior Data Acquisition

  • Large, diverse data volume

  • Minimize IT on-going support

  • Streamlines advanced analytics

  • Reasoning beyond rules

  • Statistical, Behavioral, Temporal, Symbolic

  • Correction detection integrated with workflow

  • Pre-defined + user defined analytics

Advanced Analytics

  • Higher ROI faster

  • Discover “what I don’t know”

Practical Workbench and Dashboard

  • Workflow enabled resolution

  • Consistent across all business processes

  • Supporting documentation in one system

  • Drill-down, email, attachments, link analysis

  • No technical skills required

  • Assurance through visibility

Intuitive Configurability

  • User-defined view: workbench & dashboard

  • Ad-hoc reporting + “what if” analysis

  • Flexible deployment configurations

  • Web based administration and configuration

  • Encourages user adoption

  • Direct & pertinent to unique KPI

  • Operationalizing continuous improvement

  • Quick time-to-value

  • Quick, efficient, effective

  • Leverage F500 client experience

Proven Experience and Results

  • Client base Best Practices Group

  • The most successful implementations

  • Diversity in team expertise

  • Proven customer satisfaction


Continuous transaction monitoring

Find It.Inspect every transaction.

Fix It.Resolve every exception.

Prove It.Substantiate every resolution.


  • Login