Abstract
The construction of the financial module is very important in the intelligent management of the company. The collection, transmission, and processing of relevant item information in the financial module are of great significance to the construction of the intelligent financial module. The intelligent financial processing module can improve financial office efficiency and increase the security of the financial processing process. Section 404 of the Sarbanes-Oxley Act (SOX 404) has always played a decisive role in the quality and transparency of the financial modules of the Enterprise Resource Planning (ERP) of multinational corporations, due to the mandatory nature of the Securities and Exchange Commission (SEC). The purpose of this research is to design a set of intelligent ERP financial modules for multinational corporations that could comply with SOX 404, strengthen internal controls, and improve the security and convenience of the financial module. Thereby achieving intelligent management of financial modules and intelligent prevention of risks. Our solution could fortify the preventive controls over inappropriate payments to products with quality issues, reduce manual efforts for credit memo issuance and receipt. It could also fortify the preventive controls over financial risks potentially threatened by a sudden contingent liability concerning E&O issues. It could prevent potential and unexpected frauds arisen by a malicious user to meet the requirements of SOX over preventive and detective controls over the financial system. It could also ensure the consistency of journals between the preparer’s entry and review’s approval as well as improve the completeness and timeliness of financial statement assertions.
Highlights
Sarbanes-Oxley Act is a controversial United States federal law passed in response to plenty of major corporate and accounting scandals which resulted in a decline of public trust in accounting and reporting practices such as those injuring Enron, Tyco International, Peregrine Systems and WorldCom.With this strict enforcement by Securities and Exchange Commission (SEC), compliance with SOX 404 will take large commitments of time and efforts for bothThe associate editor coordinating the review of this manuscript and approving it for publication was Xuxun Liu .public company management and public company auditors
The objective of this research is to design a suitable set of Enterprise Resources Planning (ERP) financial modules for multinational corporations that could comply with SOX 404, strengthen internal controls, and improve the quality of financial reporting
ANALYSIS OF ACCOUNTS PAYABLES MODULE This paragraph elaborates on the accounts payables (AP) module of the case company by special topics on hold payment mechanism and Return Material Authorization (RMA) mechanism
Summary
Sarbanes-Oxley Act is a controversial United States federal law passed in response to plenty of major corporate and accounting scandals which resulted in a decline of public trust in accounting and reporting practices such as those injuring Enron, Tyco International, Peregrine Systems and WorldCom.With this strict enforcement by SEC, compliance with SOX 404 will take large commitments of time and efforts for bothThe associate editor coordinating the review of this manuscript and approving it for publication was Xuxun Liu .public company management and public company auditors. What’s even more, finance system modules as a part of Enterprise Resources Planning (ERP) [1]–[5] have no choice but to be enhanced or adjusted to meet the requirements of SOX 404 for US public companies or most of the multinational corporations in response to SOX compliance. Based on the above mentioned, We have the motivation to analyze and redesign the financial modules of well-known companies. Through the analysis and processing of historical data and related items, we redesign the financial module and related processing. It makes the company’s financial module become more intelligent.
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