Implementation Audit and Control

Background Internal Audit Role Go-Live Criteria Audit Approach - Systems Audit Approach - People Summary Agenda

Anheuser-Busch Companies, Inc

7 Business Units 2 Legacy Systems 70 Payroll Areas Employees: - 8,000 Salaried Employees - 21,000 Hourly Employees Payroll Structure

Project Scope: All Domestic U.S. Business Units (big bang approach) Legacy Payroll and Time Entry Replaced Personnel Data Converted from Legacy Systems Centralized Processing Payroll Project A Big Project! A Big Project!

Pre-Work: Understand Changes to Payroll Process Learn SAP Payroll Concepts Train Audit Staff Determine Audit Plan Provide Consulting on Proposed Control Environment Establish a Working Relationship with Project Management Internal Audit Role

Audit Plan: Test Project Go-Live Criteria Evaluate Project Management Determine Impact for Future Audits of Business Units Internal Audit Role Plan It!

Go-Live Criteria System Related 1.System Reliability 2.Testing Completed Successfully People Related 1.Businesses Ready to Support New Process 2.Payroll Group Staffed and Trained 3.Communication to Employees Adequate

System RelatedPeople Related System Related People Related - Configuration - User Access - Interfaces - Procedures - Processing - Training - Data - Communication - Security Go-Live Testing Areas Remember the People!

SAP Payroll Configured to fit Organizational Structure Enterprise Structure Location Department Personnel Structure Status Type System - Configuration A-BC Financial Administration A-BC Financial Administration Corporate Audit Corporate Audit Active Salary Active Salary Regular Exempt Non-Union Regular Exempt Non-Union

Info-types Allow Retroactive Accounting Delimitation for Audit Trail Data Entry Controls (Features, Actions, Screen Controls) System - Configuration Infotype Controls = Data Accuracy

Wage Types Characteristics are Adequate Valid and Specific Map to Correct G/L Accounts System - Configuration SAP On-Line Documentation

Michael Jeanmougin

All interfaces have been identified and included in the Design and Test Plans Interface Errors should be Identified and Corrected System - Interfaces GIGO SAP Payroll SAP Payroll Time System Time System Banks & Benefit Providers Banks & Benefit Providers

Understand Process Flow System - Processes HR Master Data HR Master Data Time Reporting Time Reporting Regular Payroll Processing Regular Payroll Processing Payroll Accounting Payroll Accounting Check Printing & Distribution Check Printing & Distribution 3rd Party Remittances 3rd Party Remittances Off-Cycle Processing Off-Cycle Processing

Maintain Data Integrity During Conversion Master Data Data Already in SAP HR Module Data to be Converted via New Info-types YTD Earnings and Deductions Mid-Year Conversions System - Data Know Where the Data Resides

Supports Job Responsibilities and Safeguards Data System - Security HR/Payroll Security Data Focused Limited Authorization Object Permissions: M – Maintain; R - Read Core Security Transaction Focused Many Authorization Objects Permissions: 01 – Create, 02 – Change, 03 - Display Lock and Limit !

Procedures Around Payroll Processing are as Critical as Controls in the System Payroll and HR Personnel Business Unit Personnel System Support Personnel People - Procedures Procedures Defined and In Place!

People - Training Training is a Key Component of Project Success Inclusion in Development Project Knowledge Transfer from Consultants Methods: Testing as Training Classroom Computer-Based

Communication Needs to be Timely and Complete Multiple Types of Media Legal and Corporate Review Hotline People - Communications No Surprises!

Employees only need Access to Perform their Job Responsibilities Everyone has access who needs access Segregation of Duties Conflicts identified Restricted Number of Employees designated for Support People – User Access Keep the Data Safe!

Controls Identified for Go-Live Decision Key Controls System Reliability – Process Payroll Within Required Time Windows Testing Completed Successfully. Significant Test Problems Resolved and Re-tested. Business Ready To Support New Process. Payroll Group Staffed and Trained. Communication to Employees Adequate or Planned.

Summary Understand How Key Processes Will Change. Train Audit Staff. Perform Audit: Identify and Test Key Control Areas. Review Configuration Focus on items outside of SAP (training, communication). Continuously Communicate with Project and Audit Teams.

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