Design and Analysis of a Strengthen Internal Control Scheme for Smart Trust Financial Service

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.