OAUG SOX Panel Krista Ladd Oracle Applications Manager Silicon Image, Inc.

Silicon Image Confidential2 Introduction Company = Silicon Image, Inc Size – 300+ employees – 2004 Revenue = $173.2 million – 2005 Revenue (first 3 quarters) = $150 Million Technology Services group supports users in Sunnyvale, Irvine, Taiwan and multiple Sales sites – IT Group = 7 employees / IS Group = 6 employees Application version = Modules = Financials, Distribution, Manufacturing and HR Consulting Company used to assist with the SOX compliance project = Horn Murdock Cole

Silicon Image Confidential3 Segregation of Duties How did you resolve issues of Segregation of Duties? – Utilized the Oracle ICM SOD tool. Entered the major violations and resolved before the audit review Continuously add violations as the auditors find issues and make suggestions Monitor on a monthly basis to make sure there are no new violations – Created alerts to monitor known violations and document as compensating controls

Silicon Image Confidential4 Key Challenges What were the most challenging moments in the SOD task? 1. Clearly defining ownership of SOD violations between Finance and IT 2. Understanding the Finance processes well enough to suggest compensating system controls and explaining fully to auditors 3. Understanding Oracle functionality (current and future) to suggest system controls Journal Approval Workflow Credit Memo Workflow Etc.

Silicon Image Confidential5 SOD Recommendations Violations – Run the reports often and share any new violations with Finance – Work with BPO’s to make sure not approving user access which is a SOD violation Controls – Have an IT person who understands Finance read through all of the Finance process documentation. Look for opportunities for the system to control risk Look for items that are documented as system controls or actions when that is not the case –This will reduces future auditor confusion as well as minimize IT involvement