SAP An Introduction October 2012

SAP An Introduction October 2012

Personal Introductions Marc Trevino, PwC Senior Associate – 6 years with PwC 6 years working with SAP clients – 6 years of ISACA membership – CISA, CPA, CIA Michael Baker, PwC Senior Associate – 2 years with PwC 2 years working with SAP clients – CPA – Currently pursuing CISA PwC

Agenda What We Will Do Provide a high level overview of what SAP is SAP Authorization Concept Provide an introduction to Auditing ITGC’s in SAP Segregation of Duties in SAP PwC

What is SAP? 2012 PwC 4

What does SAP stand for? Systeme, Anwendungen, Produkte in der Datenverarbeitung Systems, Applications and Products in Data Processing PwC

What is SAP? PwC Integrated SAP integrates all business processing through one application. Links operational results and the financial aspects of those results. Multifunction al SAP can track financial results, procurement, sales, manufacturing, human resources and payroll. Modular SAP comprises of 18-20 modules in finance, logistics and HR. One or more SAP modules can be implemented. Enterprise Wide SAP is typically accessible by the entire business organisation. Most company information and transactions originate from SAP. “Real Time” An order in SAP can automatically generate an inventory movement and a posting in the GL without any “human” intervention.

Overview of an SAP Environment Presentation Layer Management reporting and end-user controls Business process Controls (incl. automated, manual, BPR) SAP configurable controls Application Layer SAP Authorisations/User profiles SAP Basis Module Database Infrastructure Layer PwC Database Operating System and other Infrastructure controls IT General Controls

SAP Instances PwC PR1 SAP R/3 or ECC 6.0 PH1 SAP Human Resources PC3 SAP Customer Relationship Management PE1 SAP Procurement PA1 APO Planning PS1 Solution Manager PB1 Business Warehouse

SAP Authorization Concept 2012 PwC 9

Overview What is the SAP authorization concept? Security within SAP is achieved through the authorization concept The authorization is designed to ensure : Maximum security Sufficient privileges for end users to fulfil their job duties Powerful user maintenance PwC

Overview Three levels of security in SAP User master record User requires valid user-ID and password 1 T-code check User requires an authorization for transactions 2 Authority check User requires an authorization for underlying authorization objects and field values PwC 3

SAP Authorization Concept The components SAP User Master Record (UMR) Master data for SAP users Transaction Code (t-code) Provides access to specific functions within SAP Authorization Object: Template for security that contains fields with blank values (uncut key) Authorization (Field Values): Authorization object with completed fields (cut key) PwC ME21 – Create Purchase Order

SAP Authorization Concept The components Buyer Roles Collection of transaction codes, authorizations and user assignments Profiles “Key ring” that contains authorizations (cut keys) Authority Check Performed by SAP to ensure that a user ID has the correct authorization object and field value combination (cut key) to execute a particular task PwC R: Display PO R: Create PO

SAP Authorization Concept Bringing it all together Let’s make an analogy the Lock and the Key To open the lock, you need the right key! PwC

SAP Authorization Concept Bringing it all together User Master Record Buyer R: Display Purchasing document R: Create Purchase Order (e.g., ME21) Profile SAP Security Check Authorizations PwC

Auditing ITGC’s in SAP 2012 PwC 16

Risk based approach in a SAP environment SAP is not a typical application / environment split Many traditional environment functions are provided within the application including: » development environment » change control » system administration and job scheduling These functions are collectively known as SAP Basis Combined with SAP integration, this serves to complicate access security PwC

Risk based approach in a SAP environment SAP allows more comprehensive functionality and control, however, the following needs to be considered: Financial transactions are executed throughout the business making segregation of duties control key The SAP access mechanism is complex making security and segregation of duties a key risk Configuration has a large impact to the overall business process and controls PwC

Key IT General Control Domains Consider tests for controls around: Access to programs and data Changes made to the system (Change management) Computer operations Weaknesses identified within the IT general controls can potentially undermine confirmed and tested automated controls and access controls at the business process level PwC

Key Areas within the SAP environment Access to Programs and Data PwC Key areas to consider include: SAP system settings including password parameters Access to user administration functions including defining and assigning profiles to users (Profile Generator) Access to run programs/ transaction codes Assignment of SAP ALL, SAP NEW, other sensitive profiles Default passwords of SAP supplied accounts (SAP*, DDIC, Earlywatch, SAPCPIC etc.) Management and review of User IDs and generic User IDs Use of audit logs (SAP Table Logging)

Key Areas within the SAP environment Change Management PwC Key areas to consider include: Customised programs and tables should be assigned to appropriate authorisation groups. Ability to unlock production environment to make direct changes to production is restricted and monitored Segregation of duties within the change management process including developer, customizer and approver of the program change/transport Changes to SAP tables and data dictionary in the production environment is minimized

Key Areas within the SAP environment Computer Operations PwC Key areas to consider include: Batch jobs and interface processing should be regularly monitored, with access to amend them restricted Batch jobs run under ANOTHER user should be restricted to appropriate personnel Batch jobs run under ANY user should be completely restricted Operating and database system administrator access should be restricted

Auditing SAP Segregation of Duties Example 2012 PwC 23

SOD – Framework – Overview 2012 PwC 'Confidential Information for the sole benefit and use of [Global, beverages company]. 24

SOD – Framework – SOD/SA Rule 2012 PwC 'Confidential Information for the sole benefit and use of [Global, beverages company]. 25

SOD – Framework – SOD Rule 2012 PwC 'Confidential Information for the sole benefit and use of [Global, beverages company]. 26

SOD – Framework – SOD Rule 2012 PwC 'Confidential Information for the sole benefit and use of [Global, beverages company]. 27

SOD – Framework – Object Level 2012 PwC 'Confidential Information for the sole benefit and use of [Global, beverages company]. 28

SOD – Framework – Object Level 2012 PwC 'Confidential Information for the sole benefit and use of [Global, beverages company]. 29

Relationships Between Layers 2012 PwC 'Confidential Information for the sole benefit and use of [Global, beverages company]. 30

SAP SOD Example Ability A Create Maintain Purchase Order t-code: ME21 Auth Object: M BEST BSA ACTVT: 01 PwC Ability B Create Maintain Vendor Master Records t-code: FK01 Auth Object: F LFA1 APP ACTVT: 01

Questions? 2012 PricewaterhouseCoopers LLP. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers LLP, which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity. PwC