SoD violation detection: software for compliance management
Segregation of Duties (SoD) is a critical control. It’s also the area where exposures are highly likely to occur. By implementing software for compliance management from Datricks, organizations can ensure ongoing compliance.
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Strengthening Financial Integrity with software for compliance management
According to KPMG, 32% of issues contributing to material weaknesses are attributed to SoD (Segregation of Duties).
This is clearly a major area of potential exposure. The good news is that using software for compliance management can go a long way to eliminating this exposure.
The compliance landscape: understanding SoD in SOX
Since the Sarbanes-Oxley Act (SOX) was enacted in 2002, companies have been required to implement stringent internal controls to maintain.
Sections 303 and 404 place direct legal responsibility on senior management to ensure the accuracy of financial statements and the effectiveness of internal controls.
SoD plays a critical role in preventing financial exposures caused by human error, non-compliance, or fraud. By requiring multiple personnel to be involved in financial processes, SoD establishes essential checks and balances.
However, in reality, maintaining effective SoD is a challenge, particularly in large enterprises with complex financial operations – or smaller organizations with limited resources.
The challenge of SoD analysis
In large, multi-location enterprises, auditors face the daunting task of tracking thousands of daily financial transactions, ensuring compliance across distributed teams.
And smaller companies, especially those newly public, often struggle to implement SoD controls, as compliance is only required post-IPO.
What’s more, implementing SoD controls can be resource-intensive, making it difficult to detect and mitigate actual violations in real time.
The power of Datricks software for compliance management
Datricks transforms SoD compliance from a reactive burden into a proactive safeguard. The advanced software for compliance management is designed to detect actual violations in real time, allowing organizations to eliminate financial exposures before they escalate. With over 200 pre-configured SoD violations based on international standards, Datricks empowers finance and audit teams to:
- Discover what users are actually doing with their authorizations
- Pinpoint actual violations and quantify their financial impact
- Identify deviations from company policy
- Simulate and refine SoD rules to match real business processes
- Leverage AI and ML to uncover hidden patterns and root causes
- Automate real-time alerts and controls to prevent further violations
Ad-Hoc SoD violation analysis in action
Datricks provides finance teams with intuitive, forensic-level visibility into SoD violations. Using machine learning-powered flow filters, auditors can effortlessly surface actual violations. For example, a finance leader can:
- Define a scenario where a single user both creates a purchase order (PO) and processes the invoice receipt (IR) for the same order.
- Apply filters to track activities performed within a specified time frame.
- Analyze process overviews enriched with ML-driven insights.
- Drill down into individual transactions to assess financial exposure.
- Set automated alerts that trigger real-time notifications and block violations before they result in financial loss.
The future of compliance management
Organizations must continuously monitor financial transactions to ensure compliance. Datricks’ software for compliance management ensures seamless, real-time SoD analysis and anomaly detection, empowering finance leaders to:
- Maintain airtight compliance with SOX requirements
- Go beyond access controls to monitor actual financial processes
- Automate SoD violation detection without technical expertise
With Datricks, finance teams can eliminate financial exposures, recover lost funds, and build trust, transforming their businesses into beacons of Financial Integrity.