D2C targets insider fraud

26.01.2007
D2C Solutions plans to announce on Monday a new suite of compliance management software for ERP systems called ComplianceNow, which is aimed at reducing internal fraud and improving adherence to Sarbanes-Oxley regulations.

Segregation of duties, a key internal control that helps ensure truth in financial reporting, is the focal point of the offering, which was crafted under the guidance of three executives intimately familiar with federal regulations governing IT: John Ashcroft, former U.S. Attorney General; David Ayres, former chief of staff for the U.S. Department of Justice; and Don Nicolaisen, former chief accountant at the Securities and Exchange Commission. All three are on the company's advisory board. "These gentlemen have a preeminent view of the state of corporate accounting," said D2C President Waters Davis, adding that there's much room for improvement on that front.

According to company officials citing the Association of Certified Fraud Examiners, 5 percent of company revenues were lost in 2005 through occupational fraud. Although the number dropped by one percent from the previous year, it's still a jarring statistic. 'We're finding that proper separation [of duties] hasn't occurred, particularly after mergers and reorganizations,' Davis said. 'We're seeing poor role design, employees with access that's too broad, and home-grown, spreadsheet-type solutions that simply aren't up to the task.'

The two cornerstones of ComplianceNow are C-Advisor, which provides comprehensive assessment, remediation, and monitoring of compliance risks across myriad business processes; and C-Monitor, which continuously monitors sensitive transactions and ERP-user activity.