PeopleSoft has announced its Enterprise Internal Controls Enforcer, a new solution in the Enterprise Financial Management family of products designed to automate and enforce internal controls required under Section 404 of the Sarbanes-Oxley Act.
The solution offers next-generation monitoring and diagnostic tools that reduce the cost of complying with the new regulations and the risk of unforeseen changes in internal controls. Enterprise Internal Controls Enforcer works in conjunction with other PeopleSoft corporate governance solutions to make the entire compliance process repeatable and auditable, allowing executives to focus on running their businesses.
"The Sarbanes-Oxley Act was promulgated for US companies, but many of its precepts are applicable in South Africa, and this country could end up adopting comparable legislation," says Mike Evans, MD of PeopleSoft South Africa.
Mike Evans, country manager, Peoplesoft SA
"It is not enough for companies to assume that the established policy and procedures are being followed. Companies must actively manage and monitor compliance with Sarbanes-Oxley. If not, the risk to the corporation and potential personal liability to executives can be significant. Technology brings to life the enforcement of a company's compliance approach," says John Hagerty, VP, AMR Research in a 15 September Research Alert entitled, "Sarbanes-Oxley Compliance: An AMR Research Guide and Framework."
Analysts estimate that the cost of Sarbanes-Oxley compliance for Fortune 500 companies will be between $2,8 million and $8 million annually per company. To address the ongoing costs of Sarbanes-Oxley compliance and the risk of changes in internal controls, PeopleSoft worked closely with a compliance customer advisory group, including MetLife and Toyota, in developing the PeopleSoft Enterprise Internal Controls Enforcer.
The system includes:
* Pre-built diagnostic tools to help enforce internal controls compliance. These tools test and continuously monitor controls in PeopleSoft's transaction systems and automatically alert process owners to configuration changes. For example, the CFO can be notified if the system is altered to allow changes in revenue recognition methods.
* Role-based dashboards provide executives greater confidence in their internal controls by extending accountability throughout the organisation. Personalised dashboards provide realtime visibility into the status of internal control testing and risk exposure.
* A single document repository and process automation to streamline ongoing compliance. The repository consolidates information related to business processes, including policies and procedures, business process narratives, risk libraries, process maps and benchmark metrics.
"At MetLife, we require every process owner to certify their controls," says Lynn McDonough, VP for Financial Reporting, MetLife, Inc. "Our next priority is to make the sub-certification process auditable and repeatable. PeopleSoft Enterprise Internal Controls Enforcer will help process owners manage the control assessment and testing and alert them to system changes, so that they can sign off with confidence."
"Without a systemised approach, factors such as human error, employee changes, and system failure increase the risk and cost of compliance with Sarbanes-Oxley," adds Evans. "PeopleSoft Enterprise Internal Controls Enforcer enables companies to automate internal controls and drives accountability throughout the organisation, easing the compliance burden for CFOs."
PeopleSoft is a leader in addressing the issue of corporate accountability with a comprehensive solution for Sarbanes-Oxley compliance:
* PeopleSoft Global Consolidations helps corporations meet accelerated reporting deadlines.
* PeopleSoft Regulatory Reporting Manager uses pre-packaged templates and repeatable, auditable processes. This facilitates the executive certification requirements of Sarbanes-Oxley Section 302 and accelerates the publishing of SEC financial reports.
* PeopleSoft Material Event Manager uses personalised operational and financial alerts to provide the foundation for meeting realtime disclosure requirements under Section 409 of Sarbanes-Oxley.
For more information contact PeopleSoft South Africa, 011 236 6520.