Backoffice Sourcing - FAQ's
Where did this concept come from?
This concept is not new. It has been used by “Big 4” firms to reduce their cost of service and increase their margins. However, companies typically do not have the resources or time to complete their due diligence and set up the necessary infrastructure.
Will the language barrier be a problem?
Our proven methodology has been designed to eliminate the “language barrier” problems. By completing detailed test plans and supplying the appropriate data and/or documentation, the Backoffice Consultants complete the test work without speaking to anyone at the client. If issues arise, the Backoffice account manager will communicate with the Backoffice engagement team. Furthermore, we have experience working with our member firm, and visited India to ensure that we can attest to their proficiency in English.
What Sarbanes work can the Backoffice engagement team perform?
The testing of controls identified for Sarbanes Oxley can be completed by the Backoffice engagement team for both IT and business processes. However, certain types of controls are best leveraged:
1. General Computer Controls
2. Segregation of Duty Controls
3. Business process controls requiring little “judgment” to draw a conclusion, i.e., signatory evidence, matching invoices to goods receipts, etc.
Who is overseeing the work performed in India?
The Backoffice Sourcing group is lead by two partners who oversee the success of each project for each client. Both are Chartered Accountants and have over 34 years of combined accounting and audit experience.
Management Team: The Backoffice Sourcing group is comprised of highly qualified internal audit managers and senior managers with “Big 4 roots.” All have significant experience using this model. All work that is prepared by staff or senior level consultants is reviewed by a manager or senior manager prior to being returned to the client.
Who is overseeing the work at the engagement level?
Backoffice account managers oversee the work at the engagement level. At the beginning of the engagement, the account managers are responsible for reviewing the test procedures and documentation before the Backoffice consultants view it. They are also responsible for reviewing the quality of the work after the Backoffice consultants return the completed testing documents. Their role diminishes as the process becomes familiar and both groups begin functioning as one team. The Backoffice account managers will then be responsible for planning, quality assurance reviews, and following up on any customer service issues.
Who is performing the work in India?
The Backoffice internal audit consultants carrying out the test are highly qualified chartered accountants or IT auditors with 5-8 years of experience.
Are the Backoffice consultants employees of HOPTOM?
The Backoffice consultants are not employees of HOPTOM, which is by design. From the inception of Backoffice Sourcing, we looked to the “Big 4” for guidance noting that several firms employ “member firms” to deliver services on a global scale. HOPTOM has leveraged the same model.
When choosing this member firm, what attributes did HOPTOM look for?
We looked for many things in order to identify the best firm. We traveled to India and examined the quality of the work performed from previous SOX engagements, the qualifications of the consultants, scalability, and depth of experience.
For IT testing, with what platforms do the Backoffice consultants have experience?
Backoffice consultants have experience auditing in the following environments: UNIX, Linux, Mainframe, Windows, and several others. They have solid experience with Peoplesoft, Oracle, Great Plains, Baan, Hyperion, and QuickBooks.
Why do we need HOPTOM? Can’t we just find some folks in India ourselves?
Yes. However, be advised that the search involves calling dozens of firms, a myriad of conference calls, physically visiting the top choices, ensuring the proper security parameters are in place, verifying the consultants are qualified and in short, perform ALL matters of due diligence. Smart companies would rather come to the experts in order to realize cost savings immediately.
What about sensitive information?
The Backoffice engagement team and the Backoffice account manager have been trained to deal with sensitive information. We have processes and safeguards in place to ensure that information is kept secure. For more information on this, please contact us.
For business process controls, how will the manual documents be made available to the Backoffice engagement team?
Instead of making copies, engagement members scan the documents so they can be placed on the server for the Backoffice engagement team. This requires little if any more time than making copies.