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Sarbanes Oxley Compliance

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Viewing 11 posts - 1 through 11 (of 11 total)
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  • #33261

    Pat Dugan
    Participant

    Does anyone have any experience using six sigma to gain Sarbanes Oxlel Compliance?  If yes ,  how did you go about structuring the project. 

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    #89695

    Mikel
    Member

    This is not a Six Sigma issue! Known problems with known solutions do not require a project!

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    #89707

    BDugar
    Participant

    Since Sarbanes-Oxley has compliance reqirements spelled out fairly clearly all you need is an implementation team.  You already know what point B is, and a quick assessment will tell you what point A is.  Then the team figures the best roadmap to get from A to B. Your team could use some of the TQM tools to order their efforts.

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    #90007

    Luis Eduardo Broda
    Participant

    I have no experience in this kind of project, but I think you have a lot of oportunities to use SixSigma methodology at SOX. Most of problems at SOX involves informations quality and internal control efectiveness… So, if you could identify the major risks process in your company, you can use DMAIC to minimize this risks.

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    #90019

    Mark waight
    Participant

    Define – Scoping 1. (ID Significant Business Risk and Significant Classes of Transactions)
    Measure –

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    #90020

    Mark waight
    Participant

    Define – Scoping 1. ID high level risk (Biz, F/S accounts) 2. ID High level processes that drive posting to F/S accounts.
    Measure – 1. Establish  CTQs (Process Control Objectives) 2. Develop collection plan 3. Gather and/or create documentation  (control point process maps, risk control matrix, process write-up, etc.) 4. Asses process risk
    Analyze – ID Gaps (i.e., significant risk with no control, faulty control design, ineefective control)
    Improve – Fix Gaps and retest
    Control – Assertion and control plan

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    #91331

    lin
    Participant

    Pat,
    I would just repeat what has been said for emphasis. SOX has requirements, you just need to implement them.
    We had the same issue here, GBs (as well as VPs) thought this was six sigma and we have had to stop a project (waste of time and focus).
    It was a lesson for the champions and sponsors on what is and is not Six Sigma.
    Bill

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    #94459

    Gerard Wilkinson
    Participant

    Dear Bill,
    The implementation of SOX may not require 6th but if you look at the very manual methods are used to caputure the information and the  subjective review of controls and the manual test plan without any automated follow -up and all this without looking at the underlying data patterns that flows through the process and control pionts then I believe that there is a need for 6th in a sense that the solution is not known because of the causal realtionships of fails.  Just a thought! 

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    #95167

    Khandekar
    Participant

    The clarity of the SOX goals are the same level as saying “You should be in compliance”..Not clear enough. Individual managements are left to determine what it means to provide a management attestation of effectiveness of internal controls. The challenge is for the management to come up with an objective definition of what is effective and what is not. Most organizations are adopting a level of materialiity that provides good financial coverage as a basis for deciding their project strategy. There is a significant opportunity to apply six sigma techniques in determining the scope of the project. Beyond that, as someone pointed out, methods for evaluating controls are lacking operational definitions, Gage R&R tests, etc. which makes the result of such an exercise questionable.
    That said, the tight timeline and broad coverage make it nearly impossible for any large organization to go the six sigma route. I believe that over the next 2-4 years, we will hear more about how certain companies used six sigma to improve the efficiency of their controls using six sigma

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    #95212

    CAIRNCROSS
    Participant

    Atul,
     
    I agree that the current time frame precludes the use of sixth sigma and if you look at the current crop of SOX solutions being sold most seem to be intent on capturing basic information and having a very simple score process.  It seems to me that they will address a regulatory requirement but do little else.  I think that if we start to think about SOX as a way to improve our business process and deliver tangible benefits to our customers then sixth sigma starts to play a more important role. I am just forming a small forum drawn from CFO from the Finance industry to debate the issue.  Will keep you posted on any interesting outcomes.
     
     

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    #112726

    johansson
    Participant

    Dear All,
    I would like to share best practices on the usa of six sigma practices and tools for  SOX requirements. I do see many opportunity. My view is that we should also speak about process management application with continuous control of the sigma level…and why not using improvement tools in the case we do not meet our customer expectation.
     
    Regards
    Max 

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