Compliance issues can result in significant loss of market capitalization and shareholder trust, as well as enforcement actions against companies. One of the most comprehensive regulations affecting how companies manage their financial accounting and reporting is the U.S. Sarbanes-Oxley Act.

The key to complying with regulatory regulations such as Sarbanes-Oxley requires comprehensive, internal controls and other processes for maintaining auditable business transactions, financial transparency, and operational controls. Executive management must have complete confidence in internal controls and in the accuracy of related reports. That comprehensive approach begins with the SAP ERP Financial solution.

SAP ERP Financials provides extensive functionalities that ensure continuous compliance with regulatory mandates – with built-in, compliance processes, while helping to reduce IT and audit costs. SAP ERP Financials also helps you manage the complex documenting, testing, process control, and sign-off requirements mandated by Sarbanes-Oxley sections 302, 404, and 409, as well as fast close and section 301 whistle-blower requirements.

SAP ERP Financials feature the following compliance functions:

• Project organization for documentation, testing, and sign-off for internal controls
• Test procedures based on the risk management framework defined by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)
• Workflow procedures that accelerate testing and sign-off
• Object-level analysis of segregation of duties (SOD)
• Authorization administration
• Automated rule building and maintenance
• Simulation and proactive compliance
• Risk mitigation and remediation
• Real-time drill-down analysis and reporting
• Management reporting

SAP ERP Financials integrates many governance processes that help you manage day-to-day operations – without the need to supplement your SAP ERP software with third-party applications. So you can achieve long-term, sustainable compliance along with high governance standards that ensure profitable growth.