Internal control over financial reporting risk

Challenge

In pursuing the need dictated by the Customer in the timely verification of the adequacy and correct implementation of the provisions of regulation 262/2005, on the basis of the Customer’s policies and operating guidelines, the Qintesi team has implemented the operating procedures aimed at documenting the activities which directly support the Financial Reporting Manager, in the certification of the processes of creation and generation of the financial statement information.

Solution

Ensuring the correct representation of the activities carried out by the various business and support areas is the main objective pursued by our Team, which also provides continuous support in the monitoring operations of the effective execution of controls to manage risks in the SAP GRC – Process Control application, both towards the structures active in carrying out the activities generating administrative-financial information (process owner), and towards the auditing structures in the moments of test of design and operating effectiveness of the fully operational procedures, ensuring suitable digital archiving check evidence.

The procedural system built in collaboration with the customer has put us in contact with numerous organizational structures with which we have prepared about 500 procedures and over 1000 key controls fully operational in the official closing moments of periodic financial statements. From an organizational point of view, the Qintesi team followed the development of a very articulated and complex structure in the various areas subject to assessment with the direct involvement of the figures directly responsible and delegated to carry out the activities.

Through the mapping of processes, the assessment and monitoring of the implementation of controls to oversee the financial reporting risks in the application for document management in the scope of the Executive Responsible, in the business, operation and finance areas, it was possible to release updates and continuous periodic procedural adjustments, directly supporting the closing activities feeding the IFRS and Solvency II financial statements.

Results

Improved the reliability of the internal control system in terms of adequacy of risk management procedures and verification of effective application
Reduced the number of issues in the face of tests conducted by Auditing
Increased the degree of digitization of the control evidence through the use of SAP GRC - Process Control, which has made archiving more efficient and easily accessible
Increased awareness of the responsible figures involved on the importance of attesting the validated procedures

Statement

We were recognized for our great ability to translate in a simple and clear way the operations that characterize processes, activities and controls, through evidential documents prepared in the management application of the business process library, with increasingly effective results declared in the Executive Audit Reports.