All of Adra´s Financial Close Process solutions support the COSO framework, information and communication, as it provides the organization information of tasks, risk rating, purpose of financial accounts and status.
Adra has a cross product initiative to enhance all our solutions with support for Internal Control. Our objective is to provide our customers with solutions that fulfill both the needs for Operational Excellence, a smooth Financial Close processes and a solid system support for Internal Control. Read more about COSO and Internal Control here.
COSO`s five Components in Internal Control
How Adra supports Internal Control
TASK MANAGER – is the tool where you can plan and delegate the Internal Control tasks to the rest of the organization throughout the year. Additionally, TASK MANAGER will give you a real-time overview of the status of Internal Control. Examples of activities:
- Conduct risk assessments (Risk assessment)
- Test Internal Controls (Monitoring)
- Conduct control activities (control activities)
- Preparing Internal Control reports for external auditing
BALANCER – makes the organization use an established Internal Control program or to establish elements of Internal Control. As BALANCER just addresses some of the operational components related to risk in the balance accounts of Internal Control, it is important to remember that all COSO components need to be considered for full compliance.
- Risk Rating – BALANCER gives the opportunity to register the risk rating for a balance account based on the company’s risk assessment.
- Account Purpose – Information about the purpose of the specific account. It could be references to relevant laws or the background for the risk rating.
- Reconciliation Procedure – A description of how the company will mitigate the addressed risk rating; Including documentation of the control activity related to the account. This could be a description of how the reconciliation is done with ACCOUNTS or other reconciliation software.
- Account Roles – BALANCER gives the opportunity to implement Segregation of duties related to the financial reporting process.
- Activity Log – Detailed logs provide the Audit trail of who did what and when.
ACCOUNTS – a transaction matching software, used for matching transactions in a number of different ways and for different reconciliation areas. In relation to Internal Control and COSO, ACCOUNTS will be a handy software to establish Control Activities. Examples:
- Bank reconciliation
- Credit card reconciliation
- Other risk reducing reconciliations