Transcript audit.transportation.org

Data Analytics
Continuous Controls & Audit Monitoring
Marius Bosman
Global IT Audit Manager
Molson Coors Brewing Company
Objectives
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MolsonCoors Overview
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Why use Data Analysis & Continuous Monitoring ?
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Project success factors
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Where do you start ?
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Continuous Monitoring examples
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Technologies needed
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Why did MolsonCoors select ACL ?
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Overview of Molson Coors
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Leading global brewer with 14,500 employees*, 18 breweries*, and operations in
more than 30 countries
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$3.03 billion in revenue in 2009; net income of $729 million (after tax)
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Global Internal Audit department with 17 Auditors across the globe, head office
located in US - Denver, Canada - Montreal, Toronto , UK – Burton.
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Embodies more than 350 years of pioneering spirit & family brewing heritage with
Molson and Coors families retaining significant ownership in the business
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Diverse portfolio of more than 65 strategic and partner brands, including signature
brands Coors, Coors Light, Molson Canadian and Carling
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Strong presence and brand momentum in three of the world’s largest markets
 Growth profile in the U.S. through MillerCoors (JV with SABMiller)
 A leading brewer in Canada via Molson
 Top tier brewer in U.K. & Ireland through Molson Coors (UK)
* Includes employees at all partially and wholly owned subsidiaries.
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Core Market Strengths and Emerging Global Presence
Molson Coors Canada
Brewing Capacity: 11.5 Million hL Annually
Molson Coors UK
Brewing Capacity: 14.6 Million hL Annually
MillerCoors
Brewing Capacity: 103.7 Million hL Annually
Core Markets
Emerging Global Markets
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Our Businesses: MillerCoors
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Successful launch of MillerCoors in 2008, creating #2 brewer in world’s most
profitable beer market
 Combines highly complementary assets to transform U.S. landscape
 Strong, dynamic player with greater scale and resources to grow volume and
profitability
 8 major breweries across U.S., including state-of-the-art brewery opened in 2007
in Elkton, Virginia
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Superb portfolio of brands representing 29% share of US beer market
 Coors Light, Miller Lite, Blue Moon, Miller Genuine Draft
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Our Businesses: Molson Coors (Canada)
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One of Canada’s leading brewers and North America’s oldest beer brand
 6 breweries, including new brewery in Moncton, New Brunswick opened in 2007
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Powerful brand portfolio includes category leading brands such as Canada’s most
popular light beer - Coors Light, leading domestic lager and ale - Molson Canadian
and Molson Export, and consumer preferred imports – Corona, Heineken and
MGD
Molson’s state-of-the art brewery in Moncton, New Brunswick.
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Our Businesses: Molson Coors (UK)
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Highly regarded portfolio of brands, including the #1 U.K. brand Carling
 Other brands include: Coors Light, C2, Grolsch, Magners Draught Cider, Cobra,
Worthington's, Caffrey's, Sol
 Niche brands to help “premiumize” the portfolio: Kasteel Cru, Grolsch
Blond/Weizen, Worthington's White Shield
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3 breweries, strategically located throughout U.K., each with rich histories
 Brewery in Burton-on-Trent is the U.K.’s largest
Burton Brewery, UK.
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Strategic Brands, Portfolio Strength
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Partner Brands
United Kingdom
Canada
United States
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Why use Data Analysis & Continuous Monitoring ?
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Greater Assurance - Use Data Analysis to increase audit
assurance & coverage - Replace sampling testing with 100%
population testing, where applicable;
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Get more done - Audit teams can leverage automated
analysis to gain efficiencies and audit more business areas
with the same amount of resources;
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Less time - Implement Continuous Monitoring to reduce
the time spend on manual monitoring activities;
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Always on - Continuous Monitoring enable “Always on
Auditing” providing timely notification of control failures;
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Provide value to business – With timely identification of
control failures.
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Continuous Monitoring – Project success factors
To ensure a successful implementation of continuous monitoring project keep the
following best practices in mind:
 Top down support – Get management support and buy in;
 Include all stakeholders – Partner with ACL to host a workshop with key
stakeholders to identify/prioritize “low hanging fruit” control monitoring
automation opportunities;
 IT Department - Ensure you have the IT department’s support to install & host
ACL technologies (best to get ACL to install);
 Power User(s) - Establish in-house power user to lead the data analytic program
or partner with ACL to develop in-house power user over time;
 Longevity – Document process and assign responsibilities for maintaining
analytics and the follow-up of exceptions.
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Continuous Monitoring – Where do you start ?
Where do you start your continuous monitoring project ?
1. Start small - Identify a hand full of “low hanging fruit”
controls that are easy to automate and provide high
value returns;
2. Live 24/7 access to data - Ensure the source data
needed for the monitoring control is accessible via one
of ACL’s data interfaces;
3. Know your exception - Decide on how to develop the
monitoring, clearly define what an exception should
look like;
4. Fine tune noise - Start testing exception logic against
the data source and fine tune to an acceptable noise
level/ false positives;
5. How often by whom -Decide on monitoring frequency
and who are responsible to perform the follow-up on
exceptions.
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Continuous Monitoring examples - General Ledger
General Ledger
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Completeness trail balance to trial balance
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Whole dollar (000’) journal entries
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Manual journal entries analysis
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Back dated manual journal entries
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Seldom used GL accounts (dormant/ new)
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Duplicate journal entries
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Manual journal entries made after hours / weekends
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Journal Entries that are subsequently reversed during the period under review
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Journal entry activity by period, showing the impact per period on the P&L
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Identify manual journal entries that have a credit to Revenue but debit an
account other than to Revenue, Cash, AR or Deferred Revenue
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Continuous Monitoring examples - Accounts Payable
Accounts Payable
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Stratify purchase order, invoice and payment per vendor
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Vendor master records that match to employee master
based on address/ bank account number
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Duplicate vendor master and payment records
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Whole dollar payment records
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Payments made to blocked vendor master
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Identify long inactive vendor master records
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Comparison of terms paid (discounts lost, not taken,
misapplied)
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Benford's Law analysis to identify transaction anomalies
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Search for unrecorded liabilities , Accounts payable
circularization (confirmation)
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Continuous Monitoring examples - Accounts Receivable
Accounts Receivable
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Stratify bad debts and write offs by customer
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Review customer accounts with no address or telephone
information
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Review the compliance with credit policy
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Review the compliance with write-off policy, age
receivables by customer
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Identify duplicate customer records
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Stratify unapplied cash per customer
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Continuous Monitoring examples - Payroll
Payroll
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Detect potentially fictitious employees
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Detect potentially fraudulent payments to employees
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Invalid SSNs, no vacation or sick time, payments made
to employee not in employee master, death records
Duplicate bank accounts in payroll files
Identify exceptions within payroll payments made to
employees
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Recalculation of employee pay rates, deductions
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Identify exceptions within employee benefits and payroll
deductions
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Identify data quality issues in the employee master
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No address or phone number, duplicate bank accounts
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Continuous Monitoring – Technologies needed
Technologies MolsonCoors used to implement Continuous Monitoring:
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Streamlining data access for SAP
“ACL Direct Link for SAP/ AX Link is the next best thing since sliced bread”
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Direct, Immediate & live access to all data in SAP;
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Huge time saver over other SAP extract options like SE16 or ABAP;
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No one between you and the data;
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No lead time, no need for data extract requests to IT;
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Automatic creation of English field names;
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Maintain data security - SAP authorizations determines user’s access to tables;
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Read only, data can not be modified or deleted.
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Streamlining data access – Oracle and other data sources
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ACL Desktop
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ACL Direct Link for SAP
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ACL Direct Link for SAP
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ACL Direct Link for SAP
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ACL Direct Link for SAP
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ACL Direct Link for SAP
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ACL Direct Link for SAP
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ACL Direct Link for SAP
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ACL Direct Link for SAP
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AX Core Client
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AX Core Client
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AX Gateway
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AX Gateway
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Why did MolsonCoors select ACL ?
7/16/2015
33, Updated 9 February 2009
Questions ?
Marius Bosman
Global IT Audit Manager
Molson Coors Brewing Company
[email protected]
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