SOX and BPM:There may be several business processes residing in an organization’s human resources, supply chain, inventory, and financial managements systems, and since data is spanned across these systems, it is difficult for the organization to get the necessary data for SEC reporting. A very well implemented business process with appropriate front-end controls and detailed audit trail can be used to manage organization’s purchasing expenses, product or service purchased, prices paid to vendors, budgets charged, cash availability, assets, and invoice management. BPM technologies provide effective management of information. Understanding of business processes ease compliance and provide significant business benefits. The automated business processes provides considerable amount of improvements in productivity by reducing manual processes, routing and reducing Sarbanes audit costs. Since BPM solution’s documentation explains how business processes are implemented, employees can get better knowledge transfer and organizations can continuously improve the compliance by managing business processes. The order to cash, procure to pay business processes are susceptible to wide-ranging risks like purchase order inaccuracy, unapproved purchase orders, wrong credit terms, huge discounts, receipt mismanagement, unauthorized accounting and invoice processing problems. Designing and implementing sound business processes can overcome this. |
