Internal Control Over Financial Reporting (ICFR)

Download the Solution Brief to protect mission-critical ERP applications from infrastructure and data-level cyber threats.

The Critical Link Between Cybersecurity and ICFR

Internal Control Over Financial Reporting (ICFR) is the framework of policies and procedures publicly-traded companies maintain to ensure financial statements accurately represent financial performance. ICFR is critical for corporate boards and senior executives because ineffective controls often precede financial restatements and can result in personal liability under Section 302 of the Sarbanes-Oxley Act (SOX).

Traditional internal control frameworks assist with user access and password policies at the application layer, but simplifying SOX compliance requires mitigating cybersecurity risks at the infrastructure and data levels. Unauthenticated attacks targeting misconfigurations or vulnerabilities in an Enterprise Resource Planning (ERP) system allow hackers to manipulate underlying financial data without leaving an audit trail. Utilizing robust SAP vulnerability management is essential to pinpoint misconfigurations and secure mission-critical systems.

Inside the Solution Brief

Securing financial systems requires a comprehensive approach bridging the gap between Chief Information Security Officers (CISOs) and internal audit teams. Access the following insights within the solution brief:

• Global Regulatory Context: Understand that international laws like C-SOX, J-SOX, and the EU 8th Company Directive mandate ICFR effectiveness.
• The Application Security Gap: Discover the reasons strong application-layer controls fail to protect underlying financial data from infrastructure exploits.
• Strategic Alignment: Assign responsibility and align security, finance, and audit teams to seal gaps in mission-critical applications.
• ERP Security Strategy: Develop a robust security strategy addressing system configuration, log management, custom application development, and continuous monitoring.