Having become an affiliate company of corporations Pepsi Americas and PepsiCo, the company «Sandora» gained great possibilities to enlarge its business activity.
To bring the company’s information network and financial accountancy in correspondence with international standards and the standards of corporations Pepsi Americas and PepsiCo, the company’s internal audit service together with the information systems department developed and launched a long-term project «SOX» (of correspondence with the law of Sarbanes — Oxley). «SOX» is the law that has been in force in the USA since 2002 and it regulates the requirements to the authenticity of financial statements at public companies which put up their shares for sale at the stock exchange. Only international audit companies «The Big Four» issue a certificate of correspondence with the law «SOX» for the company’s financial statements and accounting systems.
The working group of LLC «Art Soft» was entrusted with the «SOD» (Segregation of duty) project management which is a part of the «SOX» project. It analyses possibilities of financial risks appearing during the role appointment and access right separation by the system users. As a basic management system, the software solution «A Manufacturing Enterprise Management for Ukraine» was applied at LLC «Sandora». Before the case of LLC «Sandora», the audit of a company’s accounting system on the basis of the software solution «A Manufacturing Enterprise Management for Ukraine» to set up a correspondence with the «SOX» requirements had not been conducted by an international auditor. There are conflict matrices and automated instruments for conflict analysis in other accounting systems which are used in world practice. These systems are audited by international auditors to meet the «SOX» requirements and also to analyze conflicts.
The following factors influenced the selection of «Art Soft» company as a consulting service provider:
— Successful experience of collaboration in the enterprise automation stage using the standard solution «A Manufacturing Enterprise Management for Ukraine».
— «Art Soft» company possesses the necessary competence and experience of the solution «A Manufacturing Enterprise Management for Ukraine» application and maintenance.
— Participating in project «Consulting».
— A capability to render a wide variety of necessary for the project successful implementation services (the project management, development of recommendations on the software solution modification, making changes, preliminary and final testing, development and implementation of supplementary (non-technical) checking).
The following tasks were carried out during the project implementation:
1. The following processes were described and analyzed:
— Supply of the raw stock and materials;
— Accounting of the ready-made product (supply, stock-taking, loading);
— Accounting (supply, stock-taking, posting of the non-circulating assets);
— Price setting (conditions by the agreements with customers);
— Mutual payments (cash flow by the agreements with customers and suppliers);
2. A coordinated framework of possible risks at the software solution «A Manufacturing Enterprise Management for Ukraine» was developed. The system transactions are appropriated to one of the three degrees of risk (High, Middle, Low) according to the requirements of the international audit.
3. Risk minimizing changes were made:
— New users’ appointments, with minimized internal risks, were developed. There are 51 new appointments.
— Recommendations on the order of the appointment change and users’ access rights were formulated and approved.
— The working database was supplemented with some changes. 600 system users were given new rights.
— Conflicts, appearing at the working database if the user holds more than one appointment, were analyzed. 353 conflicts were processed.
— Additional (non-technical) checking and regulations for examination of conflicts, which are technically impossible to settle in the current situation, were developed.
— Final recommendations on the system’s further upgrade, separation of access rights, and minimization of the related financial risks were developed.
4. The project results (positive effect) for LLC «Sandora»
— International audit for correspondence with the «SOX» requirements was successfully passed. There is the auditor’s conclusion of the company Deloitte.
— Possible risks and conflicts at the system users’ rights were analyzed. Recommendations on their minimization were developed and applied.
— An automated system of audit and approval of changes at the users’ rights was obtained.
