Kimberly-Clark, famous for making Kleenex and Scott paper products, has automated its accounting controls playbook for compliance with the Sarbanes-Oxley Act. This multinational manufacturer generates annual revenues of more than $15 billion and employs 60,000 people in 200 facilities spread across fifty countries. Enforcing strict, consistent controls on accounting information in all locations has long been a top priority for Kimberly-Clark’s finance department. Nonetheless, testing and documenting internal controls to bring the company into complete compliance with Sarbanes- Oxley were a major challenge because of the “different languages, cultures, time zones, and systems,” remembers Jerry Rehfuss, the finance director who spearheaded the compliance effort. This is why the company decided to have software stand guard over accounting.

1. According to Jerry Rehfuss, Kimberly-Clark uses a basic accounting principle of having more than one person involved in accounting processes to uncover mistakes or fraud. How can getting more people involved in the accounting process act as a safeguard against fraud and mistakes?
2. It would seem that one important goal for a good accounting system would be to provide financial information to any of Kimberly-Clark’s 60,000 employees. And yet Kimberly-Clark has restricted access to its accounting system so that only a limited number of people can access certain information. Why is restricted access important?
3. Do you think Kimberly-Clark’s outside auditors should be allowed to make changes to the company’s accounting software if they discover a serious problem? Why or why not?
4. Today, most large corporations such as Kimberly-Clark spend millions of dollars to ensure that their accounting information is accurate and complies with the Sarbanes-Oxley Act. Is the expense worth it? Why or why not?