Supporting Auditors with SAP S/4HANA Implementation: Altum Strategy Group’s Approach

Implementing SAP S/4HANA represents a significant shift for organizations aiming to enhance operational efficiency, leverage real-time analytics, and achieve digital transformation. For auditors, this transition is both a challenge and an opportunity to redefine their roles in ensuring a successful implementation as well as an ongoing robust control environment. Altum Strategy Group is dedicated to supporting audit teams during this transition, training them on how to maximize the new environment for audit purposes, helping them understand the nuances of SAP S/4HANA, preparing for audits, and effectively managing risks associated with the implementation process. This document outlines how Altum can assist auditors across critical areas, including training, pre- and post-implementation reviews, digital transformation, risk control matrices (RCMs), security and controls, as well as Governance, Risk, and Compliance (GRC), and access management.

Adapting to Changes in SAP S/4HANA

One of the first steps in supporting auditors during the SAP S/4HANA implementation is to clearly understand how the new system differs from previous versions such as SAP ECC. SAP S/4HANA introduces a simplified data structure, real-time processing, and enhanced user interfaces, which impact business processes and internal controls. These changes bring new risks, control requirements, and compliance challenges. Without proper training, auditors may struggle to understand these complexities, potentially overlooking key risks or ineffective controls, and not taking advantage of the new system functionality in conducting audits.

To effectively audit SAP S/4HANA, auditors need to receive training in several critical areas:

• System Architecture and Functionality: Auditors should understand the core components of SAP S/4HANA, including the new Universal Journal, embedded analytics, and changes in data processing. Familiarity with these components is essential to assess whether financial transactions and operations are recorded accurately and in compliance with relevant standards.
• Digital Transformation and Process Changes: Training should cover how business processes are redefined in SAP S/4HANA, focusing on automation, real-time data analysis, and integration with other digital tools. Auditors need to be able to evaluate how these changes impact the organization’s control environments and overall compliance.
• Security and Access Controls: SAP S/4HANA introduces advanced role-based access controls (RBAC) and segregation of duties (SoD) frameworks. Auditors should understand how these controls are configured, identify potential SoD conflicts, and ensure that sensitive data is adequately protected.
• Governance, Risk, and Compliance (GRC): GRC is embedded within the SAP S/4HANA framework, making it critical for auditors to understand how risk management, compliance checks, and monitoring are conducted. Training should focus on auditing GRC configurations, evaluating risk control matrices, and ensuring adherence to internal and regulatory requirements.
• Data Migration and Integrity: As organizations move data from legacy systems to SAP S/4HANA, auditors should be trained to review data migration processes, ensure data accuracy and completeness, and validate reconciliation efforts to prevent errors or data loss.

Pre/Post-Implementation Reviews: Ensuring Readiness and Compliance

Pre-implementation reviews are critical for identifying potential risks before SAP S/4HANA goes live. Altum can assist auditors in conducting thorough pre-implementation assessments, focusing on areas such as project governance, business process mapping, internal controls identification, and system configuration. Our team can help auditors establish audit objectives, identify key risks, and set up appropriate controls.

In the post-implementation phase, Altum supports auditors in validating whether the system is operating as intended, evaluating the integrity of data migration, and reviewing control effectiveness. We provide methodologies, tools, and templates that streamline the review process and ensure compliance with internal and external audit requirements. Altum’s approach enables auditors to assess whether the implementation aligns with business objectives and regulatory standards.

Navigating Digital Transformation with Confidence

Digital transformation is a core element of SAP S/4HANA implementation, enabling automation, advanced analytics, and integrated processes. For auditors, this shift means adapting to new workflows and digital tools that impact control environments. Altum can assist auditors in understanding the implications of digital transformation, focusing on assessing digital workflows, identifying potential gaps, and verifying automated controls’ effectiveness. Our training programs include scenario-based workshops, where auditors learn to evaluate digital transformation risks and ensure that internal controls are in place to manage these changes.

Building Effective Risk Control Matrices (RCMs) and Documentation

Documentation is a cornerstone of successful SAP S/4HANA implementation, especially regarding RCMs and process mapping. Altum works closely with auditors to develop comprehensive RCMs that identify key risks and controls across financial, operational, and IT processes. We provide templates and tools to document workflows, policies, and procedures, ensuring they are aligned with regulatory standards, best practices, and external requirements. This documentation supports audit activities and facilitates ongoing monitoring and compliance.

Enhancing Security and Controls

SAP S/4HANA brings new capabilities in terms of security and control management, including role-based access controls (RBAC), segregation of duties (SoD), and data encryption. Internal auditors must evaluate whether these controls are designed and operating effectively to protect sensitive data and ensure compliance. Altum provides targeted training on SAP S/4HANA security features, helping auditors understand how to assess user access controls, monitor activity logs, and identify vulnerabilities. We also guide auditors in testing controls related to SoD and compliance with data protection regulations like GDPR and CCPA.

Integrating GRC and Access Management

Governance, Risk, and Compliance (GRC) frameworks must seamlessly integrate into the SAP S/4HANA environment to manage risks effectively. Access management, a critical aspect of GRC, requires auditors to evaluate processes for user provisioning, role assignments, and SoD checks. Altum supports auditors by providing training on GRC tools integrated with SAP S/4HANA, offering guidance on developing effective access management controls. Our team also helps auditors align GRC strategies with the broader objectives of the digital transformation, ensuring compliance with industry standards and regulatory requirements.

Preparing Auditors for a Successful SAP S/4HANA Journey

Altum Strategy Group is committed to being a strategic partner for auditors throughout the SAP S/4HANA implementation. Our tailored training programs, comprehensive documentation support, and hands-on guidance ensure that auditors are well-prepared to manage audits effectively and address potential risks. By collaborating with Altum, audit teams gain the tools, knowledge, and confidence needed to navigate the complexities of SAP S/4HANA implementation, ensuring that the transformation is successful and aligned with business goals and compliance standards.

Conclusion

Implementing SAP S/4HANA presents auditors with unique challenges, ranging from understanding new system functionalities to managing compliance and risk. Altum Strategy Group offers a holistic approach that includes training, documentation, risk management, and ongoing support, helping auditors ensure a smooth and secure transition. Whether pre- or post-implementation reviews, digital transformation, security, or GRC management, Altum stands ready to assist auditors every step of the way, fostering a successful and sustainable digital transformation journey.