Business assurance

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Business assurance

• the mature phase
• in
• compliance

Presentation dr. Tim Willems Date February
28, 2006
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Who is Ba-PRO?

• Ba-PRO is a Business Assurance Software provider.
  Headquartered in the Netherlands, development
  team in Romenia. Founded by dr. Tim Willems, also
  founder (1995) of BWise, international leading
  Sarbanes Oxley compliance software provider.
• Business Assurance gives company management
  confidence by continuously
• matching relevant business controls against
  business back office data. Automated detective
  preventive controls
• Ba-PRO develops dedicated Business Assurance
  solutions
• Fraud management
• Sarbanes Oxley compliance
• Credit- and Risk management

Alerts and KPIs
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Alerts

• Home page
• KPIs
• Statistics
• Alerts
• Framework

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Find relevant control info

• Control framework
• Subsidaries
• Departments
• Processes
• Accounts
• Risks
• Control objectives
• Controls
• Coso
• . . .

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XBRL / IFRS / GAAP

• Standards/ XBRL
• US Gaap
• IFRS
• Accounting manual

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Find the right employee

• Who?
• Responsible
• Accountable
• Consulted
• Informed

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Solutions Fraud management

• Advantages
• Fraud is a very hot topic and difficult to
  prevent / proove that it didnt happen
• Big 4 have admitted difficulties in fraud
  management
• Running Ba-PRO fraud management creates awareness
  thus reduces risk
• No complete competitive solution available
• Fraud management consulting partner available
  (4itrust)
• Predefined fraud controls (documented in the
  control framework)
• smurfing
• over value
• SOD
• vendor relations
• private relations
• . . .
• Immediate fraud alerts (sometimes even
  preventive)
• Cut back on related cost
• prevention
• fraud loss
• remediation

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Solutions Credit management

• Advantages
• Traditional credit management
• only focusses on the vendor side
• only monitoring of outstanding invoices
• only reactive
• Ba-PRO
• includes / facilitates customer
• full workflow between vendor and clients
• dispute resolution
• monitoring of outstanding invoices
• vendor and client application (hosted)
• includes business assurance rules on invoicing
  and payment process proactive
• ease of integration (SAP agents available)
• Runs on SAP, Oracle and Navision
• Improved customer relationship
• Cost reduction per invoice
• Cost reduction cash managent
• Web-enabled (vendor and customer)

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Solutions Compliance

• Advantages
• Traditional SOX / compliance management
• focus on documentation (control framework)
• control testing by control self assessment
• continuous testing SOD focus
• Ba-PRO
• documentation (in Ba-PRO or integrated with
  third party like SAP-MIC)
• XBRL included (ifrs, us-gaap . . .)
• continuous testing full compliance automated
  and preventive
• other templates integrated (Cobit, Coso, FDA,
  Fraud . . .)
• process and data centric
• KPI dashboarding (process efficiency)
• Agent technology for data integration
• flexible (create your own compliance app)
• available for all process owners (integrated)
• Cost reduction in compliance
• Automated detective and preventive controls
• Full Business Assurance (does not stop at SOD or
  SOX) Multiple perspective and different
  portfolioviews

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Business assurance

• Compliance
• Some
• More
• Detail

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Current business issues
Supervisory board Avoid risks and fraud Board
Autonomous growth and Acquisitions
(integration) CFO Finance ongoing operations
and growth Management Grow revenues and
profit, cut back cost Management Integrate
(regional) business units/companies Management
Control the business based on real time
information Controller/CFO Comply with
multiple regulations (FDA, SOX, Basel II)
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State of the Art

• Risk and control documentation (Sarbanes)
• (e.g. Axentis, SAP-MIC, Open Pages, BWise, Word,
  Excel)
• Financial Accounts
• Processes
• Risks
• Controls (and objectives)
• Procedures / documentation
• Control self assessments
• Manual evidence collection
• Expensive reporting structure
• Off line monitoring based on reports
• Separate systems for multiple compliance
• No business assurance

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What most companies miss

• Most companies today
• only have a partial control framework documented
  (e.g. Axentis, BWise, Paisley)
• dont have real time monitoring on material
  events (409)
• dont have real time control testing
• dont have the segregation of duties checks
• dont have Business Assurance
• dont have Risk and Fraud detection systems
• In most companies
• the board has control documents available but the
  board lacks real time control transparancy and
  steering data (no cockpit)
• the CFO wants to avoid mistakes and has to assure
  the business to create financing
  possibilities/improve banking relations
• the operational management has to integrate
  companies quickly to support corporate
  transparancy and predictibility (assurance)

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But what are we looking for?
Continuous fraud detection Real time risk
management KPI monitoring, continuous control
(e.g. Sarbanes Oxley 409, real time
disclosure) Transparancy Integrate transparent
and controlled companies Real time management
cockpit Single documentatioin platform for
multiple compliance / reuse information Platform
to facilitate the growth process from detective
to preventive controls
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Bob, can we build this?

• 24 7 Risk, Fraud and SOD detection to reduce
  loss
• Real time control monitoring (link controls with
  real business data)
• Enterprise Risk management (real time risk
  monitoring)
• 247 corporate governance and disclosure (e.g.
  409)
• XBRL introduction for ease of reporting
  compliance
• Integrated multiple compliance control
  documentation frameworks (COSO, Cobit, Fraud
  detection, Basel II)
• Include business processes
• KPI cockpit integrated with control framework to
  drive control improvements
• Yes Business Assurance

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Clients Return
247 risk, fraud and SOD control Cut back on
remediation after the fact cost Offer
confidence to shareholders and stakeholders Reduc
e financing, auditing and reporting cost Grow
revenues and profit, cut back integration and
process cost Control the business based on real
time KPIs, management cockpit Platform for
growth to automated preventive controls Comply
with mulitple regulations (FDA, SOX, ISO, Basel
II) Maintainable transparancy, back office data
integrated with control framework
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Business Assurance cycle

• Control Framework
• Axentis
• BWise
• SAP MIC
• . . .
• Ba-PRO

• Assurance
• alerts
• KPI dashboards
• reports (XBRL based)
• email

Improve control
Workflow automation Back office app. improvements
Automated XBRL and XML storage

• Business assurance rules
• select relevant controls
• set tresholds
• values
• reports

• Back office data
• SAP
• Oracle (apps)
• Baan
• Peoplesoft

Agents
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Business Assurance Data-flow
Ba-PRO
SAP Netweaver Alerts KPIs
Alerts KPIs
Improve projects / workflow
Business Rules
Data Store Collected data from back office
systems stored in XBRL, XML, XSD
Back office apps SAP Oracle Navision Baan Your own
Control framework SAP-MIC -Sarbanes
Controls -Fraud detection -IFRS manual - . . .
Agents
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Find relevant control info

• Control framework
• Subsidaries
• Departments
• Processes
• Accounts
• Risks
• Control objectives
• Controls
• Coso
• . . .

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Alerts

• Dashboards
• Alerts
• Drill down
• Web based
• Personal

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Ready?

• Start with available (SOX) Content
• Control framework (COSO)
• Accounting manual / IAS
• Business Rules
• Alerts and Dashboards
• Integration agents available
• SAP
• Oracle
• Navision
• No license investments
• Quick start implementation package
• Pay per business rule

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GO!Great opportunity to experience how it is
feasable to balance risk and controls with
business improvements

• Pilot
• Select Control framework (e.g. SOX, Fraud, Credit
  . . .)
• Test Business Rules
• First Control framework, risk management
  information, Alerts, dashboards available
• Evaluate
• Continue
• Local consulting (Smartview)
• Quick-Experienced-Efficient
• No sweat
• 10 days
• Dr. Tim Willems
• Pilot now and be invited as a member of the
  Expert team, Amsterdam April 2006
• Amsterdam roundtable 2006 (captains of industry
  and government roundtable)

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Stay in touch
Dr. Tim Willems CEO of Ba-PRO tim_at_ba-pro.com Phone
31 6 54792099 Klaus Berghoffer CEO of
Smartview (Romenia) kberghoffer_at_smart-view.comPho
ne 40 724550570