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Introduction:


Purpose of internal control


Some companies are facing challenge to implement an internal control system.

Big companies listed on a stock exchange are forced by law to implement a system of

Internal control and risk management, SAP GRC Solution might be a good and valueable choice.

Small or medium sized companies who are not willing to implement a SAP module at the moment, but also want to have some kind of internal control can use SAP AIS for this purpose. (Business and System Audit)

To have some kind of automatism they can combine SAP AIS with SAP closing cockpit

Implementation of internal control with SAP AIS and SAP Closing Cockpit:


  1. Entering SAP AIS menu:

Select: other menu and enter (as instance) *SAP*Auditor

Select SAP composite role

SAP AUDITOR is the “master role”  there are many roles available for special purpose like:

SAP Auditor for AR, FA or TAX. When you choose one of these roles the menu has

only functions concerning TAX or FA.

 

SAP AIS module is available

In this menu you will find hundreds of functions for control. One main advantage is,

that SAP provides all these functions in ONE menu

The menu also has some main topics like:

Making System Audit: Checks concerning security

Business Audit: Checks concerning financial reporting

 

  1. Using SAP Closing Cockpit:

You can use SAP Closing Cockpit to run functions automatically.

From SAP EHP6 an additional task for internal control is available

  1. Building a Risk and Control Matrix in Excel

You can set up risk and control matrix as an instance for:

Fixed Assets, Accounts Receivables/Payables, General Ledger, Bank Accounting

Your Risk and control matrics might look like this example:

First column: Target

Second column: Risk

Third column: Cecking  activity

Fourth Column: How control activity it is supported by SAP AIS

In the SAP AIS menu you also can find a lot of folders named CONTROLS.

Let yourself be inspired from these control routines, and use it for your risk and control

matrics

 

Example for control routine

Target: Check if posting have been made promptly and accurate time.

Risk: Postings have not been made contemporary, and might have some bad impact on

Quality of financial reporting

Checking activity: Using function S_ALR_87100998, here you have 3 statistical reports and 4

ranking reports.

 

Documentation:

Yes, this is not SAP GRC, so you have to make documentation manually.

In my opinion, it is possible setting up some kind of robust internal control system by combining

SAP AIS + SAP Financial Closing Cockpit.

Thank you for your valuable feedback,advice and discussion.

All the best

Erwin

Further information:

Find presentation about SAP AIS on SAP Service Marketplace.

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