Oracle Internal Controls Manager

Krista Ladd

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Silicon Image, Inc.Silicon Image, Inc.

Semiconductor company located in Sunnyvale

– A leader in multi-gigabit semiconductor solutions for the secure transmission and storage of rich digital media

Stats:– Revenue = $105 million in 2004– Headcount = 350 people– Clean 404 Opinion for 2004

Oracle ERP– 90 day implementation – live May 2, 2003– Financials, Order Management, Manufacturing,

OSFM, HR, Purchasing, Portal….

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Why SIMG Chose Oracle ICM over CompetitorsWhy SIMG Chose Oracle ICM over Competitors

Oracle had partnered with large accounting firms to create the software

– This made us confident that auditor requirements would be included in the core functionality

The integration tools of ICM work well with our existing Oracle ERP environment.

– Linking processes to key accounts in the GL– Workflow with approvals

Our users have Oracle easily accessible to them now and already have a familiarity with the system, navigation and support process.

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ICM Deployment StatusICM Deployment Status

Purchased product in Q3-2004 but decided to postpone implementation until 2005

– Majority of documentation already complete with manual process

– Internal functional resources were not available

Used Segregation of Duty violation reporting in 2004

– Found issues internally before auditors and were able to remediate effectively

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ICM Deployment StatusICM Deployment Status

Deploying ICM for 2005 certification– Business users are actively implementing this

quarter and will use ICM for Q2 testing and retroactively enter Q1 results into ICM

Benefits of the delayed implementation:– Better understanding of auditor requests (reports,

etc.) and terminology– Oracle development continually upgrading to

meet all the audit requirements and we can benefit from these For example, IT Audit and enhanced reporting are

available in AMW.C / 11.5.10

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Partners UsedPartners Used

Price Waterhouse Coopers was our auditing firm

– PwC was very impressed with our use of Oracle ERP to automate as many controls as possible – with more coming in 2005 For example, Journal Approval, iExpense,

iProcurement and created numerous Oracle Alerts as compensating controls

Also, hired Horn Murdock Cole consulting for our internal audit function

– Worked with BPO’s to create documentation and performed internal testing & remediation

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ICM Lessons LearnedICM Lessons Learned

Requires major functional support resources– Sarbanes-Oxley is complicated and a typical

IS/IT employee cannot fully understand how it all flows together

– The set-up is pretty easy from a technical perspective – most of the set-up time is spent working with the functional user identifying their documentation strategy and requirements.