Deloitte Close, Consolidate, And Report Performance Blueprint
Deloitte
The DeloitteAdvantage Close, Consolidate, and Report Performance Blueprint (CCR) combines process and technology into one best-in-class system for the financial close. It involves the application of financial controls embedded in a solution jointly developed by Cognos and Deloitte. The Blueprint embodies a step-by-step solution that helps companies quickly apply best practices for financial controls and optimize the closing process.
Each step in financial close is mapped to the appropriate control activities. Overall, 30 regulatory control objectives linked to the framework established by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) are itemized and identified based on Deloitte’s extensive knowledge and experience.
Deloitte has broad knowledge of risk and controls, gained from assisting hundreds of companies with their readiness efforts and from providing advice to thousands of public audit clients. This expertise is what really gives the solution the “Deloitte Advantage.”
Benefits
- Provides a roadmap to implementation of a consolidation system, including the necessary process and application controls.
- Provides sufficient documentation for the CCR process, which can be used by a Sarbanes-Oxley compliance audit or without significant further effort from client resources.
- Identifies key controls in the CCR process and reduces the risk of material misstatements in financial reporting.
- Increased use of automated controls provides greater data integrity and saves Sarbanes-Oxley resource costs and team effort for testing.
- Streamlining the CCR process according to best practices and control activities can ultimately shorten the close cycle.
Architecture
At the beginning of each close cycle, a set of maintenance steps determines the impact of any changes made during the period. This may include acquisitions or dispositions of subsidiaries, changes in ownership, changes in consolidation rules or accounting policies, changes in subsidiary chart of account mapping to the consolidation entity, or changes to security.
Here is an example of how the Performance Blueprint leverages process controls, application controls, and DeloitteAdvantage enhanced controls:
- A regulatory control objective (shown in light blue), based on the COSO framework, must be achieved at this stage. In this example, the objective is: “Consolidation packages received from subsidiaries must accurately reflect the underlying financial records at each subsidiary.”
- A process control (green) to achieve this objective maintains a checklist that includes all subsidiary charts of account mappings to the consolidation entity. An application control in Cognos Controller enables the user to lock account structures and prevent data from being entered for non-existent accounts or subsidiaries.
- A DeloitteAdvantage control (dark blue) includes signoff on the accuracy and completeness of the numbers submitted by the subsidiary. This may involve creating reports to be reviewed and signed off for audit purposes.
Availability
For more details, visit our Website: www.deloitte.ca
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