[Your Name] [Your Position] [Your Organization] [Date]

[Recipient's Name] [Recipient's Position] [Recipient's Organization]

Subject: Proposal for Executing SAP S4 HANA Record to Report Audit

Dear [Recipient's Name],

I am writing to propose an audit of the SAP S4 HANA Record to Report (R2R) process within our
organization. The purpose of this audit is to ensure the integrity, accuracy, and compliance of
financial reporting, as well as to identify any potential risks or inefficiencies within the system.

1. Objective: The primary objective of the SAP S4 HANA R2R audit is to assess the following:

a) The effectiveness of internal controls related to financial reporting. b) The accuracy and
completeness of financial data within the system. c) Compliance with relevant laws, regulations, and
internal policies. d) The efficiency and optimization of the R2R process.

2. Scope: The audit will encompass the entire R2R process within the SAP S4 HANA system,
including the following key areas:

a) Master data management, including chart of accounts, general ledger, and cost elements. b)
Journal entry creation, approval, and posting processes. c) Period-end closing activities, such as
balance sheet reconciliations and financial statement preparation. d) Reporting functionalities and
accuracy of financial statements generated from the system. e) Compliance with accounting
standards and regulatory requirements.

3. Methodology: The audit will be conducted in accordance with generally accepted auditing
standards. Our approach will involve the following steps:

a) Preliminary assessment: Understanding the organization's R2R processes, key controls, and
potential risk areas. b) Risk assessment: Identifying and prioritizing the risks associated with the R2R
process. c) Testing and analysis: Performing substantive testing of transactions, system
configurations, and relevant controls. d) Documentation review: Assessing the adequacy of policies,
procedures, and documentation supporting the R2R process. e) Reporting: Providing a
comprehensive audit report with findings, recommendations, and an action plan for improvement.

4. Deliverables: Upon completion of the audit, the following deliverables will be provided:

a) Audit report: A detailed report outlining the audit findings, including identified strengths,
weaknesses, and recommendations for improvement. b) Management letter: A formal letter
addressed to management summarizing the audit results and providing specific recommendations. c)
Action plan: A comprehensive plan outlining steps to address identified weaknesses and improve the
R2R process. d) Presentation: A presentation to management and relevant stakeholders to
communicate the audit findings and recommendations.

5. Timeline: The estimated timeline for the execution of the SAP S4 HANA R2R audit is as
follows:

Activity Estimated Timeframe

Audit planning and scoping [Start Date] - [End Date] Fieldwork and data analysis [Start Date] - [End
Date] Reporting and deliverable preparation [Start Date] - [End Date]
 6. Budget: The estimated budget for conducting the audit is [Insert Amount]. This budget
includes the necessary resources, expertise, and technology required to perform the audit
effectively.

7. Next Steps: We kindly request your approval to proceed with the execution of the SAP S4
HANA R2R audit. Upon approval, we will commence the planning phase, including scoping,
resource allocation, and scheduling. We are committed to delivering a comprehensive and
value-driven audit to enhance the reliability and efficiency of our financial reporting
processes.

We look forward to discussing this proposal with you in more detail and addressing any questions or
concerns you may have. Please feel free to contact me at [Your Email Address] or [Your Phone
Number].

Thank you for considering this proposal. We are confident that this audit will provide valuable
insights and contribute to the continuous improvement of our organization's financial processes.

Sincerely,

[Your Name] [Your Position] [Your Organization]