Presented by: Ranjit Simon John

SUGMENA Conference – 28.May.2013 Dubai

The Presentation if divided into 3 sections;

1) Introduction to Audit in SAP2) Materializing the Audit through SAP tools3) Different Types of SAP Audit tools

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1) Introduction to Audit in SAP

We all will be familiar with various types of Audit, Financial, Administrative, ISetc.In the modern corporate world IS auditing is gaining more weight age due to thedependence of Business on IS. Auditing a traditional IT environment was moreeasy compared to auditing business process where highly complex ERP systemsare implemented.For a company with ERP system, it will be easy to certify the success of ERPimplementation based on the KPIs defined. But few years down the line it will behighly difficult to check and analyze whether the system complies with thecorporate governance rules.

The objectives of corporate governance are threefold:. Transparency of information. Internal control of processes. Effectiveness of internal controls

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The SAP process provides a consistent flow of data and information that enables the information to be controlled more quickly and accurately.

You can also configure additional controls for mySAP ERP Financials.For example, you can arrange that every posting that exceeds a certain amount is

marked and identified accordingly. You can monitor reported financial data and other key figures at any time.

Whenever a critical threshold is reached, you can investigate the cause of the problem.

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How SAP assist in the Audit Procedure - Organizing Audits

SAP NetWeaver and SAP ERP offer built-in controls, including:

- Internal system controls- Configurable controls- Security controls- Report controls

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Criteria for Audit Questionnaire

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Sales & Distribution business process impact on Financial Accounts

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Control Objectives and Risks in the Sales & Distribution Process mentioned above has to be developed

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In the above mentioned Sales & Distribution process the Control Objectives & Risks are;

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Define every business process in each business units for identification of Control Objectives and Risks

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In the Sales & Distribution example mentioned the Control Attributes to be checked for Process Step PS2 is shown below;

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The Risk associated with each business process control is identified

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Screen Shot of SAP MIC Implemented Tool

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2) Materializing the Audit through SAP tools

SAP provided excellent tools to conduct system audit based on the questionnaire prepared.

Following slides demonstrates how to configure the Audit Management System in SAP and generate the Audit Report.

First we need to do few configuration changes to tune the audit as per our requirement. Execute transaction SPRO --> SAP reference IMG --> Cross-Application Components --> Audit ManagementAudit Management is divided into four categories;

- Question List- Control- Audit Definition- System Adjustment

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Create what kind of Question Profile is required. I have created "Part-Sub Part-Element-Sub Element-Sub Qu" For the Audit purpose.

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Once the question profile is created you have to create the drill down level for the profile.

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After defining the question hierarchy you have to specify the ValuationSpecification and the scores to be awarded for each value. By selecting the createdvaluation profile double click on the "valuation" icon on the right side. There weneed to set the details of valuation and the scores we intend to provide for each.

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In the next step set the priority level

In the next step Audit Definition Part has to be ConfiguredDefine the Audit Usage

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Define the Audit Type

Create the rating Strategy for the Audit

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Now all the settings related to conducting the Audit has been configured.Now we have to create Audit, Audit Plan, Question List.Following are the main objects used for the Audit;

1) Audit Plan - The audit plan consists of all audits planned for a particular period oftime. For example, all audits that are to be executed in the space of one year aredefined in an annual audit plan.

2) Audit - An audit, according to DIN EN ISO 9000, is a systematic, independent,and documented process used to obtain audit results and to evaluate these resultsobjectively in order to determine to what extent the criteria of the audit have beenfulfilled.

3) Question List - Question lists are multilingual collections of questions thatare answered during the execution of the audit . The allowed valuation can beplanned for each hierarchy level.

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4) Corrective Actions - These are actions that are deemed necessary toeliminate the cause of errors that were determined during the audit and toprevent the recursion of these errors. The corrective actions to be executed mustbe appropriate to the effects that the particular error has on the product.

5) Preventive Actions - These are actions that are deemed necessary toeliminate the causes of possible errors before they occur. The preventive actionsto be executed must be appropriate to the effects that the possible error couldhave on the product.

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Execute transaction PLMD_AUDIT, first create the question list required for theaudit with the components newly configured.

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After creating the Question List change the status to “Released”.

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Execute transaction PLMD_AUDIT, Create the Audit Plan.

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Execute transaction PLMD_AUDIT, Create the Audit.

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Assign the Question List created to the Audit.

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The list of questions assigned under the Audit created.

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Once the question list is attached to the audit we need to evaluate the questions. Evaluations will be based on the configuration done in SPRO. Evaluation: Execute transaction PLM_AUDITMONITOR. Select the required fields and execute.

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3) Audit tools available in SAP

Basic tools available is TBI_REPORTS

Execute ST13 -> Tool Name TBI_REPORTS

Execute ST13 -> Tool Name TBI_REPORTS

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All the major business process checks can be checked and analyzed through the tool

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TBI report executed for Procurement -> Purchase Orders

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TBI report executed for Procurement -> Purchase Orders

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TBI report executed for Procurement -> Purchase Orders

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