finance demo script - audit workbench

15
MICROSOFT DYNAMICS® AX 2012 R2 AUDIT WORKBENCH January 2013 Version 1.0.0

Upload: hnoaman

Post on 18-Jul-2016

16 views

Category:

Documents


1 download

DESCRIPTION

Demo script

TRANSCRIPT

Page 1: Finance Demo Script - Audit Workbench

MICROSOFT DYNAMICS® AX 2012 R2

AUDIT WORKBENCH January 2013Version 1.0.0

Page 2: Finance Demo Script - Audit Workbench

AX2012R2-DS003 Microsoft Dynamics AX 2012 R2 Sub Ledger Integration Demo Script

Contents

Introduction........................................................................3Audience............................................................................3Scenario.............................................................................4Problems this Demo Addresses..........................................4Key Pains or business imperatives.....................................4Overview............................................................................4

Demo 1: Policy rule typesDemo 2: Create Audit policy

Demo 3: View Audit cases................................................14Conclusion........................................................................15

Disclaimer

2

Page 3: Finance Demo Script - Audit Workbench

AX2012R2-DS003 Microsoft Dynamics AX 2012 R2 Sub Ledger Integration Demo Script

INTRODUCTIONThis document examines the new audit workbench functionality included in Microsoft Dynamics® AX 2012. The primary objective of this demo script is to provide the user with an overview of the new audit rules, policies and cases and how it can improve operational effectiveness by detecting fraud early and reduce the costs associated with auditing.This document and its included script:

Demonstrates the ability to define common audit rules, such as random sampling of expense reports, purchase orders, and vendor invoices.

Explains how to create flexible audit policies, allowing you to define specific audit rules which can be applied to one or more legal entities in your organization.

Upon completion of the audit policy, violations are grouped into audit cases, allowing auditors to research and record all findings regarding violations.

AUDIENCEThe script in this document should be used to demonstrate the value of Microsoft Dynamics AX 2012 to a business decision maker (BDM). The executives that you present to will find value in this script if they are challenged with:

Maintaining strong continuous controls on expenditures in their organization Expensive, non-repeatable, time consuming audits

This script targets CFO’s, Controllers, and Internal auditors who need to create strong process controls which effectively detect fraud early and to which action can be taken quickly to eliminate fraud and stop the problem.

3

Page 4: Finance Demo Script - Audit Workbench

AX2012R2-DS003 Microsoft Dynamics AX 2012 R2 Sub Ledger Integration Demo Script

SCENARIO This script focuses on the following processes:

Policy rule types: Manage which documents are to be audited as well as the query type used to audit those documents.

Audit policies: Assign policies to specific legal entities in an organization, schedule the policies as well as define specific audit rule criteria.

Audit cases: View, research and record all findings regarding audit violations

PROBLEMS THIS DEMO ADDRESSESThis script focuses on solving issues around time consuming manual audits by providing rich user defined audit rules that can be scheduled to run automatically. Additionally any violations found are automatically grouped into audit cases allowing for ease of maintenance and tracking.

KEY PAINS OR BUSINESS IMPERATIVES Effectively manage audit costs of critical business processes Manual audit queries are time consuming and expensive Effectively track and record audit violations

DEMO PRESET CONFIGURATION:This script was written to work with the Microsoft Dynamics AX 2012 R2 RTM Virtual Machine (VM), released in December 2012. Make sure that the VM is up and running and that you have logged on. The script addresses key pain points and challenges that different roles might face. However the demo can be completed as the system administrator.

Domain: CONTOSO User: Administrator Password: pass@word1

OVERVIEWMicrosoft Dynamics AX 2012 introduces the Audit Workbench which is a fully automated auditing solution which can be used detect fraud early and strengthen internal processes and controls. The following provides a list of demonstrations covered in this script:

Policy rule types Audit policies Audit cases

4

Page 5: Finance Demo Script - Audit Workbench

AX2012R2-DS003 Microsoft Dynamics AX 2012 R2 Sub Ledger Integration Demo Script

DEMO 1: POLICY RULE TYPESScenario and BackgroundIn Microsoft Dynamics 2012 you can define audit rules types which will allow you to audit expense reports, vendor purchase order or vendor invoices. Six different query types can be used to define the policy rules: Conditional, aggregate, sampling, duplicate, list search and keyword. In this scenario Sara, Contoso’s CFO is reviewing several draft travel budgets for the next fiscal year and has noticed some significant increases in hotel lodging year over year. Sara wants to gather some more data around why Contoso is spending more on hotels to determine if they need to negotiate better rates with corporate hotel chains, or change Contoso’s expense policies regarding where and how much employees can spend per night at a hotel. In addition, Sara wants to make sure that the increases are not attributed to internal fraud. Sara tells Ken that she wants Contoso to start auditing high dollar hotel expenses on expense reports so they better understand who is incurring those charges, where they are occurring and for what events. In addition she tells Ken she wants to understand if any employees are attempting to defraud Contoso by entering expense lines multiple times across different expense reports. Ken logs into Dynamics AX and creates 2 policy rule types, one to check for duplicate expense lines and then other a policy rule type that will allow Contoso to aggregate amounts across expense reports based on a set of conditions.

1. Open Compliance and internal controls > Setup > Audit > Policy rule type

2. Click New to add a rule type.3. Enter High dollar hotel in the Rule name

field. 4. In the Query name field select Expense

report line.5. In the Query type field select Aggregate.6. In the Legal entity field select Legal

entity.7. In the Document date reference field

select Modified date and time.8. Click New to add another rule type.9. Enter Duplicate in the Rule name field. 10. In the Query name field select Expense

report line.11. In the Query type field select Duplicate.12. In the Legal entity field select Legal

entity.13. In the Document date reference field

select Modified date and time.

5

Page 6: Finance Demo Script - Audit Workbench

AX2012R2-DS003 Microsoft Dynamics AX 2012 R2 Sub Ledger Integration Demo Script

Additional policy rule types can be created in this form such as a random sample of purchase orders over a certain amount, and queries for specific words existing on expense reports and so on.

End of Demo Scenario 1

DEMO 2: CREATE AUDIT POLICYAudit policies allow you to run a collection of audit rules against one or more legal entities in your organization. The audit rule criteria can be set per audit policy and each policy can be scheduled to execute once or on a recurring basis. Now that Ken has created the High Dollar Hotel policy rule type he can include that in an Audit policy rule for Contoso’s US legal entities and further specify the criteria for the rule.

1. Open Compliance and internal controls > Common > Policies > Audit policies

2. On the Action Pane, click Policy.

3. In the Name field type, Contoso USA policy

4. Expand the Policy organizations FastTab and select Contoso Entertainment System USA, Contoso Consulting USA and Contoso Retail USA and click the Add button. .

6

Page 7: Finance Demo Script - Audit Workbench

AX2012R2-DS003 Microsoft Dynamics AX 2012 R2 Sub Ledger Integration Demo Script

5. Next expand the Policy rules FastTab6. Select the Duplicate rule type and click

the Create policy rule button.

7. In the Audit policy rule form enter 90 in the Additional days to evaluate for duplicates field.

8. Next click the Select button.

9. Select the Group tab and select the Add button.

10. Enter in the following criteria in the field column:NameExpense categoryTransaction dateTransaction amount

11. Click OK to close form.

12. Click OK to close form.

This rule will consider any expense line which has the same employee, expense category, transaction date and transaction amounts as a duplicate.

7

Page 8: Finance Demo Script - Audit Workbench

AX2012R2-DS003 Microsoft Dynamics AX 2012 R2 Sub Ledger Integration Demo Script

13. Next select the High dollar hotel rule type and click the Create policy rule button.

14. In the Audit policy rule form click the Select button.

15. Select the Range tab and set the Criteria field on the Expense category field to Hotel.

16. Select the Aggregate tab and click Add.

17. Select Transaction amount for the Field.

18. In the Aggregate Function field select Sum.

8

Page 9: Finance Demo Script - Audit Workbench

AX2012R2-DS003 Microsoft Dynamics AX 2012 R2 Sub Ledger Integration Demo Script

19. Select the Group by tab and click Add.

20. Select Employee as the field.

21. Click Add.

22. Select Expense category as the field.

23. Select the Having tab and click Add.

24. Select Transaction amount as the field.

25. Select Sum as the AggregateFunction.

26. Enter >2000 as the Criteria.

27. Click OK to close form.

28. Click OK to close form.

29. In the Audit policy form select the Additional options button on the Action pane.

9

Page 10: Finance Demo Script - Audit Workbench

AX2012R2-DS003 Microsoft Dynamics AX 2012 R2 Sub Ledger Integration Demo Script

30. Enter 1/1/2013 in the Starting date field

31. Enter 1/31/2013 in the Ending date field.

32. Select the Batch button.

33. In the Audit policy batch processing form select the OK button.

Upon clicking the OK button the Infolog form should open with a message indicating that the Audit policy batch processing job has been added to the batch queue.

End of Demo Script 2

10

Page 11: Finance Demo Script - Audit Workbench

AX2012R2-DS003 Microsoft Dynamics AX 2012 R2 Sub Ledger Integration Demo Script

DEMO 3: VIEW AUDIT CASESUpon completion of the audit policy batch job if any expense reports were found in violation of any of the audit rules contained in an audit policy one or more audit cases will automatically be created.

34. Open Compliance and internal controls > Common > Audit > Audit cases.

In the Audit cases list page you should see an audit case created with a Description of Audit High dollar hotel and an audit case created with a Description of Duplicate

35. Double click on the High dollar hotel audit case to open the details.

36. Expand the Associations FastTab.

In the Associations grid you should see one or more expense reports that contain hotel charges that create a combined total greater than $2000.

37. Select one of the expense reports in the grid and select the Details button.

38. In the Expense report form you are able to view more details regarding the expense report including the hotel charges.

Additional note regarding research on the expense reports that are attached to the audit case can be captured in the Case log section of the audit case.

End of Demo script

CONCLUSIONThis demonstration has guided you through automating the audit process by:

Creating policy rule typeso Indicate the documents you wish to audito Select which of the six query types you want to use

11

Page 12: Finance Demo Script - Audit Workbench

AX2012R2-DS003 Microsoft Dynamics AX 2012 R2 Sub Ledger Integration Demo Script

Executing flexible audit policieso Create rich user-defined audit rules per policyo Execute the policy against one or more legal entities in your organizationo Schedule the audit policy to execute once or on a recurring basiso Documents containing audit violations automatically attached to audit caseso Ability to manage and track audit violations to resolution

12

Page 13: Finance Demo Script - Audit Workbench

AX2012R2-DS003 Microsoft Dynamics AX 2012 R2 Sub Ledger Integration Demo Script

Disclaimer© 2011 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista, Microsoft Dynamics and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. Other names and brands may be claimed as the property of others.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. Microsoft may make changes to specifications and product descriptions at any time, without notice.Sample code included in this presentation is made available AS IS.  THE ENTIRE RISK OF THE USE OR THE RESULTS FROM THE USE OF THIS CODE REMAINS WITH THE USER.

MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION. NO LICENSE, EXPRESS OR IMPLIED, BY ESTOPPEL OR OTHERWISE, TO ANY INTELLECTUAL PROPERTY RIGHTS IS GRANTED BY THIS PRESENTATION. Microsoft products are not intended for use in medical, life saving, or life sustaining applications.

Microsoft Dynamics is a line of integrated, adaptable business management solutions that enables you and your people to make business decisions with greater confidence. Microsoft Dynamics works like and with familiar Microsoft software, automating and streamlining financial, customer relationship and supply chain processes in a way that helps you drive business success.

U.S. and Canada Toll Free 1-888-477-7989Worldwide +1-701-281-6500www.microsoft.com/dynamics

13