The German regulations for properly supported data processing in accounting systems (GoBS), valid since 1995, require a process documentation in order to prove the proper fulfillment of archiving obligations in accordance with the German Commercial Code §257,3 (Handelsgesetzbuch §257) and the tax code §147,2 (Abgabenordnung §147), so called compliance.

Additional regulations also require compliance.  The requirements, however, are mostly less specific, but very similar to those of the GoBS.  Process documentation in accordance with GoBS is therefore an excellent basis to fulfill the obligations to prove the compliance with SOX, EuroSox, product liability law, Basel II, etc .

Thus, here compliance means to fulfill the below archiving requirements:

• Correctness and completeness

• Security of the complete procedure

• Protection against changes and falsification

• Protection against loss

• Use only by authorized personnel

• Adherence to retention periods

• Process documentation

• Traceability and verifiability

Although the demand for process documentation has existed for more than 10 years, so far only a few companies have a corresponding valid document. The main reasons are:

• Until now, the requirement was seldom enforced in the auditing practice

• The creation and maintenance of complex text files is time-consuming as

• the concepts and terms are not self-explanatory,

• the relevant tasks within the businesses are diversely perceived

• the archiving methods and objects as well as the technical infrastructure are constantly changing so that it is difficult to keep texts up to date.

• the existing documents do not show version nos., release dates, etc.

• The benefit for the business of using process documentation was not perceived.

However now, the conditions have fundamentally changed. Process documentation is required increasingly by tax auditors and certified accountants in order to get an overview of the processes. Also, for internal reasons, process documentation is indispensable to maintain business operations in todays dynamic environment.

It remains difficult to keep process documentation up to date and and to maintain a clear versioning.  To counteract the B&L Management Consulting GmbH has, using modern DMS technology, developed a new concept.  The collaboration among individuals while creating the documentation together is then supported optimally, and data structures are designed for frequent parameter changes.

A more detailed description of the methodology (German language) can be found here.