Process Flow for an MIC Project 

Purpose

A project for compliance with the requirements of the Sarbanes-Oxley Act that uses the Management of Internal Controls component usually involves performing the steps as described below.

These steps can be divided into three areas:

●     Steps 1 and 2: Setting up the internal controls

The settings required to set up the internal controls are divided into central settings and settings for an organizational unit. This enables large companies to set centrally as many targets as possible, which can then be accepted with minimum effort by the organizational units, as well as adjusted. This reduces the amount of duplicate efforts in the company's different organizational units.

●     Steps 3 and 4: Reviewing and improving the internal controls

Assessments and tests allow any shortcomings in the controls to be identified (as issues) and remedied.

●     Step 5: Analyzing the status of the internal controls

The reporting functions allow you to perform an extensive analysis of the current status of the internal controls. Management uses this analysis as the basis for confirming with their sign-off that effective controls are implemented in the organizational unit and that any shortcomings are known.

Prerequisites

You have made the settings in Customizing for MIC.

Process Flow

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       1.      Central Settings

                            a.      Edit roles

                            b.      Set up the organizational hierarchy

                            c.      Assign roles

                            d.      Document organizational units within the project scope

                            e.      Set up the account group hierarchy

                              f.      Set up the central process catalog

                            g.      Set up the management control catalog

For more information, see Central Settings.

       2.      Settings for the organizational unit

                            a.      Specify processes in the project scope

                            b.      Assigning processes to the organizational unit

                            c.      Assign roles

                            d.      Document controls

                            e.      Assign management controls to organizational units

For more information, see Settings for the Organizational Unit.

       3.      Assessments

                            a.      Control Design Assessment

                            b.      Control Efficiency Assessment

                            c.      Process Design Assessment

                            d.      Management Control Assessment

       4.      Tests

                            a.      Test of Control Effectiveness

                            b.      Management Controls Test

For more information, see Assessment and Test.

       5.      Analyses and Sign-Off

For more information, see Reporting and Sign-Off.