(1888PressRelease)
November 11, 2008 - San Ramon, Calif. – Prodiance Corporation, a leading provider of Governance, Risk and Compliance solutions, announced a new executive white paper entitled Spreadsheet Controls and the NAIC Model Audit Rule. The new white paper discusses how critical and complex spreadsheets used in insurance operations for risk and uncertainty analysis and accounting operations need to be controlled to pass auditor scrutiny under the Model Audit Rule.
Failure to properly manage and validate these spreadsheets can compromise the integrity of data, resulting in errors, financial loss, and lack of confidence in spreadsheet models. It is the heavy reliance of such complex spreadsheets that have the NAIC, auditors, and insurance executives looking to improve internal controls around these processes to achieve better oversight and a sense of financial transparency.
"Insurance organizations that do not take a proactive approach to complying with the mandates set forth by the Model Audit Rule are going to find themselves in a difficult situation in 2010," said Dr. Soheil Saadat, president and CEO of Prodiance Corporation. "If we have learned anything from Sarbanes-Oxley, it is that the act of becoming compliant is a process that is dramatically improved by leveraging technology. Prodiance technology coupled with best practices and our expertise in Spreadsheet Management and Control enables global insurance firms reduce spreadsheet risk, improve audit efficiencies, and reduce the cost of Model Audit Rule compliance."
Abstract
Since the National Association of Insurance Commissioners (NAIC) made revisions to the Financial Reporting Model Regulation (Model Audit Rule) in June 2006, the insurance industry’s attention to the risks associated with financial reporting has been on the rise. Structured similarly to Section 404 of the Sarbanes-Oxley Act, the Model Audit Rule places a high importance on internal control over financial reporting (ICFR). Insurance carriers, public and private, are in the process of evaluating their internal processes in preparation for the first reports due in 2010 for the 2009 reporting period.
One major hurdle for insurance firms is mitigating the risks associated with critical spreadsheets and other end user computing applications to successfully meet the requirements of the Model Audit Rule. Insurance organizations rely on complex spreadsheet applications in many aspects of their business and will need to be sure that these are closely inventoried, documented, validated, monitored, and controlled under the new regulations.
Download the White Paper
The new white paper is available immediately upon request on the Prodiance web site at: http://www.prodiance.com/downloads/requestwp_audit.asp
About Prodiance
Prodiance delivers enterprise class software solutions to help organizations increase visibility and control over mission critical spreadsheets and Access Databases while improving compliance, mitigating operational risks and driving process improvement. Prodiance leverages over 18 years experience in delivering innovative technology solutions for highly regulated markets. Leading global organizations across the banking, insurance, capital markets, telecommunications, manufacturing, aerospace and defense, media and entertainment, food and beverage, health care, and educational markets have trusted Prodiance as a strategic partner to achieve their goals. Prodiance Corporation is an independent, privately held corporation based in San Ramon, California. Additional news and information about Prodiance solutions, products and services is available at www.prodiance.com or by calling 1-866-569-5678.
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