ACL Success Story – Manufacturing – Procter & Gamble

2012-05-01

Procter & Gamble – Brazil

Higher-quality regulatory compliance across a global enterprise

“ACL Analytics Exchange provides faster, higher-quality compliance with tax authority audits, while 100% transactional data coverage eliminates the need for manual sampling.”

Carlos Nogueira, Finance Manager, Procter & Gamble – Brazil

Company Profile

Procter & Gamble (P&G) is a global company founded 174 years ago in the United States. Today, it has approximately 135,000 employees and markets more than 300 brands in more than 140 countries. In the past fiscal year, P&G’s global sales reached US$88 billion.

Objectives

P&G’s corporate environment in Brazil has evolved considerably in recent years, including accounting practice shifts, a deeper emphasis on transactional tax obligations and ERP and peripheral system changes. As a result, the volatile tax environment remains an area of constant risk for operational sustainability. The newly computerised E-government program – whereby information is shared with federal, state and municipal governments – also represents a new interaction with governmental authorities. Standardised information access now equips state governments to approve and validate electronic fiscal invoices – requiring technical changes that often compromise system and platform integration. As a key location in P&G’s global growth strategy, Brasil has been the site of new investments, significant market development and rapidly expanding transaction volumes

Implementation and Planning

In Brazil, P&G relies on ACL Analytics Exchange to support its Quality Book Assurance project, which cross-checks tax and accounting databases to find exceptions and create action plans to ensure full information integration. Large data volumes and limited technical capacities, plus ERP production database access and SAP table extractions posed initial challenges. Additional issues included importing over 60 tax and accounting obligations, validating tax calculations and P&G global business models, and ensuring audit compliance. ACL Analytics Exchange harnesses the power of a server for automated data extracts, providing faster and more comprehensive audit analysis without compromising system performance or data integrity.
“Analytics Exchange provides an end-to-end solution for a complete audit analysis and issue resolution cycle.”

Carlos Nogueira, Finance Manager, Procter & Gamble – Brazil

Results

P&G has used ACL technology for a wide range of test types including:

  • enhanced risk mitigation
  • regulatory compliance through 100% data coverage
  • sophisticated data extraction, analysis and reporting

After just one year, the project has analysed P&G Brazil transactions worth approximately US$17 billion. ACL Analytics Exchange and analytic technology have reinforced internal processes, including accounting and tax calculations, and ERP interface and satellite tax system changes. By validating transfer pricing policies and tax debit and credit balances between organisations, P&G has significantly reduced its risk exposure. The solution provides faster, higher-quality compliance with tax authority audits, while 100% transactional data coverage eliminates the need for manual sampling.

Next Steps

P&G will initiate ongoing report reviews and launch a continuous monitoring process. The project enables P&G to perform monthly analyses on official databases at the transactional level, as required by local authorities. It is a process that was impossible before the Analytics Exchange implementation, due to large transaction volumes and disparate database formats. The flexible solution can quickly generate new outputs – making it easier for P&G to comply with research and respond to internal and external audits.

Impact Award Winner

Procter & Gamble received the Best Application of Continuous Auditing or Monitoring Award for the 2011 ACL Impact Awards.

Tuesday, May 1, 2012 In: Client Success Stories, Hot Topics Comments (None)

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