This blog post is about the overarching topic of auditing principles of orderly bookkeeping and storage of books, records and documents in electronic form as well as data access in SAP. In the following, three indicators targeting the compliance and correctness of accounting will be presented.
Part 3 of the series: “The digital Audit for Cross Process Weaknesses”
1. How the digital audit for cross process weaknesses works
2. Smart strategies to automatically audit master data and payments
3. Quick Guide: Auditing principles of orderly bookkeeping
4. What no one tells you about automatic analytics of SAP access protection
5. 3 top indicators for auditing process plausibility
6. A complete guide to Professional Judgement…
Before you proceed reading on the details of the indicators, I would recommend you read the concept of indicators first.
Three Top Indicators for Auditing Principles of Orderly Bookkeeping
Every indicator is associated with a process, a process area, an audit objective and a risk respectively. In the following, three selected indicators in the area of orderly bookkeeping are presented.
In total, I have developed and implemented 20 indicators for the area of cross processes. You can download the details about all cross process indicators here.
FI documents with a long interval between posting and processing date
This indicator aims at identifying compliance and correctness.
There is the risk of fraudulent or erroneous postings in (re)opened periods.
The criteria for this indicator is:
The FI document has been marked, because the posting date differs more than 40 days from processing date. 40 days represent one accounting period plus 10 days to close the period.
FI documents posted during weekend
This indicator aims at identifying compliance and correctness.
There is the risk that fraudulent activities might have been performed outside regular business operations.
The criteria for this indicator is:
The document has been marked because it was performed on a weekend. Postings done by system users are not listed (Usertype B: System User (Internal RFC and Background Processing) and C: Communication User (External RFC)).
Missing reversed document
This indicator aims at identifying compliance and correctness.
There is the potential risk of business transactions not being recorded correctly in a period. Inappropriate cut-off in financial statements.
The criteria for this indicator is:
The document has been marked because it is a reversal and the reversed document could not be found in the data.
