Internal Audit in ERP Systems Context

2021 ◽  
Vol 19 (163) ◽  
pp. 544-554
Author(s):  
Roxana Dana IGNA ◽  
◽  
Bogdan Stefan IONESCU ◽  
Keyword(s):  
Enterprise Resource Planning ◽  
Internal Control ◽  
Quantitative Research ◽  
Business Processes ◽  
Internal Audit ◽  
Resource Planning ◽  
Analysis Tool ◽  
Erp Systems ◽  
Intelligent Software ◽  
Technical Risk

Through this paper, the authors wanted to highlight how important and useful are ERP systems for any company that requires internal auditing. ERP - Enterprise Resource Planning systems are intelligent software that can be adapted to the needs of each company allowing the combination of all business processes in a single database. They are also a way of internal control over the data entered and employees. From an internal audit perspective, these systems can be considered an appropriate solution because they provide an opportunity to more effectively manage internal and external audit risks. The main objective of this paper is to demonstrate the satisfaction of internal audit needs with the help of integrated systems. These systems facilitate the operation of data and their security. Another objective was to analyse how much these systems can reduce certain risks. The risks of significant misstatement may be mitigated by these systems, and any operation introduced may be analysed, verified and approved / disapproved. Therefore, a quantitative research was conducted, using the questionnaire as an analysis tool. Based on the answers received, the profile of the respondents was outlined and at the same time a statistical analysis was performed. The results obtained demonstrate that respondents appreciate ERP systems’ utility. They perceive a reduction in financial and operational risk but also an increase in technical risk. Of course, these technical risk issues can be mitigated by the internal audit department's ability to assess and manage any issues that may arise. However, respondents also emphasize the need of training employees in using the system and understanding the data generated by it. Without well-trained employees, performance at the company level, as well as at the internal audit level would not be achieved. It is essential to have training at employees’ level who manage data in an ERP system. This training is also valid for internal auditors who can recommend this system to reduce audit risks.

Information System Assurance for Enterprise Resource Planning Systems: Unique Risk Considerations

2002 ◽  
Vol 16 (s-1) ◽  
pp. 99-113 ◽  
Author(s):  
Sally Wright ◽  
Arnold M. Wright
Keyword(s):  
Enterprise Resource Planning ◽  
Relational Databases ◽  
Business Processes ◽  
Implementation Process ◽  
Resource Planning ◽  
Structured Interview ◽  
Process Reengineering ◽  
Erp Systems ◽  
Client Experiences ◽  
Implementation Problems

Enterprise Resource Planning (ERP) systems inherently present unique risks due to tightly linked interdependencies of business processes, relational databases, and process reengineering. Knowledge of such risks is important in planning and conducting assurance engagements of the reliability of these complex computer systems. Yet, there is little empirical evidence on this issue. To examine this topic, a semi-structured interview study was conducted with 30 experienced information systems auditors (from 3 of the Big 5 firms) who specialize in assessing risks for ERP systems. This approach allowed us to obtain detailed information about participants' views and client experiences. The results indicate that the implementation process of ERP systems has an important impact on system reliability. Further, interviewees identified a number of common implementation problems (e.g., improperly trained personnel and inadequate process reengineering efforts) that result in heightened risks. Interviewees also reported that ongoing risks differ across applications and across vendor packages. Finally, in providing assurance on ERP systems participants overwhelmingly indicate a focus on testing the process rather than system output.

Open and Closed Practicals for Enterprise Resource Planning (ERP) Learning

2011 ◽  
pp. 138-152 ◽  
Keyword(s):  
Enterprise Resource Planning ◽  
Business Processes ◽  
Deep Understanding ◽  
Resource Planning ◽  
Erp Systems ◽  
Erp System ◽  
Technological Complexity ◽  
Functional Aspects ◽  
Business User ◽  
Teaching Learning

Enterprise Resource Planning (ERP) systems are implemented in companies to improve their business processes. An ERP system entails extensive functional and technological aspects during its implementation. Teaching ERP systems for computer science students implies addressing these two aspects: ERP functionality and technological features. It is a challenge for teachers to design practical experimentation that students can perform in the teaching environment, due to the prerequisite of a deep understanding of the business processes, business user requirements, and the technological complexity of ERP systems. In order to improve student skills in ERP systems, we encourage active learning among students. In this chapter, we present a methodology using open and closed practicals to learn about both technical and functional aspects of ERP systems. Using these practicals allows us to prepare and organize this teaching/ learning process.

Critical Success Factors of ERP Implementation

2011 ◽  
pp. 758-765
Author(s):  
Leopoldo E. Colmenares ◽  
Jim O. Otieno
Keyword(s):  
Enterprise Resource Planning ◽  
Success Factors ◽  
Business Processes ◽  
Resource Planning ◽  
Erp Systems ◽  
Erp System ◽  
Critical Success ◽  
Systems Implementation ◽  
Sales And Marketing ◽  
Share Data

An enterprise resource planning (ERP) system is an integrated set of programs that provides support for core organizational activities, such as manufacturing and logistics, finance and accounting, sales and marketing, and human resources. An ERP system helps the different parts of an organization share data and knowledge, reduce costs, and improve management of business processes. In spite of their benefits, many ERP systems fail (Stratman & Roth, 1999). Implementing an ERP system is a major undertaking. About 90% of ERP implementations are late or over budget (Martin, 1998), and the success rate of ERP systems implementation is only about 33% (Zhang et al., 2003).

Life Cycle of ERP Systems

2005 ◽  
pp. 1844-1849
Author(s):  
Cesar Alexandre de Souza ◽  
Ronaldo Zwicker
Keyword(s):  
Life Cycle ◽  
Enterprise Resource Planning ◽  
Multinational Firms ◽  
Business Processes ◽  
Resource Planning ◽  
Integrated Systems ◽  
Erp Systems ◽  
Erp System ◽  
New Business ◽  
Business Requirements

The 90’s witnessed an impressive growth of Enterprise Resource Planning (ERP) systems in the market of corporate IT solutions. For instance, O´Leary (2000) reports that a single ERP system (SAP´s R/3) is used by more than 60% of the multinational firms. Among the explanations for this phenomenon are the competitive pressures suffered by the companies that have forced them to seek alternatives for cost reduction, differentiation of products and services and integration of their business processes. The ERP systems evolved exploiting the need for quick deployment of integrated systems to meet these new business requirements, while companies were (and still are) under pressure to outsource all the activities that are not embraced by their core business.

ERP Adoption in Indian Organizations

2005 ◽  
pp. 1102-1107
Author(s):  
Monideepa Tarafdar
Keyword(s):  
Inventory Management ◽  
Enterprise Resource Planning ◽  
Business Processes ◽  
Resource Planning ◽  
Social Contexts ◽  
Erp Systems ◽  
It Use ◽  
Manufacturing Resource Planning ◽  
Wide Availability ◽  
Erp Software

Enterprise resource planning (ERP) systems integrate various functions and processes in organizations. ERP software is developed in the form of different modules, each of which helps to perform distinct functions within the company. The modules interface with the same database and are integrated so that workflows can be designed across different modules. The software helps standardize business processes and ensures organization-wide availability of transaction data. ERP software evolved from earlier manufacturing resource planning (MRP) systems, which included inventory management, procurement and production planning functions. The implementation of ERP software started in the early 1990s and during the late 1990s, the growth rate of the ERP market was between 30 to 40%. As of 2001, 30,000 companies around the world had implemented ERP and the total value of the ERP market was at $25 billion. There is not much literature relating to ERP implementation and adoption in companies in Asia and other parts of the developing world. These organizations face issues that are significantly different from those faced by organizations in the developed world, because of differences in the sophistication of IT use, and in the cultural and social contexts. In this article, we describe some experiences that companies in India have gone through in implementing ERP systems. We present a framework for analyzing the critical factors and issues that influence the ERP adoption process, and highlight the areas of opportunity and risk. The framework is sufficiently general so as to be extended to other developing countries.

Critical Success Factors of ERP Implementation

2005 ◽  
pp. 628-633 ◽  
Author(s):  
Leopoldo E. Colmenares ◽  
Jim O. Otieno
Keyword(s):  
Enterprise Resource Planning ◽  
Success Factors ◽  
Business Processes ◽  
Resource Planning ◽  
Erp Systems ◽  
Erp System ◽  
Critical Success ◽  
Systems Implementation ◽  
Sales And Marketing ◽  
Share Data

An enterprise resource planning (ERP) system is an integrated set of programs that provides support for core organizational activities, such as manufacturing and logistics, finance and accounting, sales and marketing, and human resources. An ERP system helps the different parts of an organization share data and knowledge, reduce costs, and improve management of business processes. In spite of their benefits, many ERP systems fail (Stratman & Roth, 1999). Implementing an ERP system is a major undertaking. About 90% of ERP implementations are late or over budget (Martin, 1998), and the success rate of ERP systems implementation is only about 33% (Zhang et al., 2003).

Mobile Technologies Extending ERP Systems

2009 ◽  
pp. 440-444
Author(s):  
Dirk Werth ◽  
Paul Makuch
Keyword(s):  
Resource Management ◽  
Human Resource Management ◽  
Human Resource ◽  
Enterprise Resource Planning ◽  
Business Processes ◽  
Wide Spectrum ◽  
Resource Planning ◽  
Mobile Technologies ◽  
Erp Systems ◽  
Erp Software

Nowadays the majority of enterprises use Enterprise Resource Planning (ERP) software to improve their business processes. Simultaneously, mobile technologies which can be used within ERP have gained further importance. This is because ERP, together with mobile technologies, offers a wide spectrum of synergies and both have a significant impact on enterprise efficiency. The improvement possibilities in ERP due to mobility range from sales activities, over logistic processes, up to effects on the human resource management.

Enterprise Resource Planning (ERP) Implementation Approaches and the Performance of Procure-to-Pay Business Processes

2017 ◽  
Vol 8 (1) ◽  
pp. 55-71 ◽  
Author(s):  
Ibrahim Kofahi ◽  
Haroun Alryalat
Keyword(s):  
Enterprise Resource Planning ◽  
Quantitative Research ◽  
Business Processes ◽  
Resource Planning ◽  
Big Bang ◽  
Research Approach ◽  
Erp Implementation ◽  
Erp System ◽  
Oracle Erp ◽  
The Impact

In spite of the importance of implementing Enterprise Resource Planning (ERP) system in any organization, there are still many fears of not getting the return on investment from implementing it. In addition, there are many ERP systems implemented in different organizations that claim they did not get enough benefit from these systems. For this reason, this paper is intended to study the impact of ERP implementation approaches (Agile, Big Bang, and Hybrid) on the performance of Procure-to-Pay business processes. This paper adapts the quantitative research approach by using the survey strategy, which is conducted by a questionnaire collected from 91 respondents working in fifteen companies that implement Oracle ERP in Jordan. The researcher uses the SPSS as an analysis technique to test all hypotheses. The findings of the study show that the two ERP Implementation approaches (Big Bang and Hybrid) have a significant impact on the performance of Procure-to-Pay business processes. On the other hand, the study shows that Agile (ERP) implementation approach has no significant impact on the performance of Procure-to-Pay business processes.

Enhancing Functional Fit with Continuous Training During the ERP Post-Implementation Phase

2013 ◽  
Vol 5 (2) ◽  
pp. 30-45 ◽  
Author(s):  
Biswadip Ghosh ◽  
Tom Yoon ◽  
Janos Fustos
Keyword(s):  
Business Process ◽  
Enterprise Resource Planning ◽  
Business Processes ◽  
Resource Planning ◽  
Erp Systems ◽  
Continuous Training ◽  
Implementation Phase ◽  
Erp System ◽  
User Training ◽  
Training Resources

Enterprise Resource Planning (ERP) systems, such as SAP, feature a rich set of integrated business applications. However, to maximize the long term benefits from ERP implementations, organizations need to careful manage the post-implementation phase and focus on supporting end users to achieve better fit between their business processes and the ERP system features. This study develops a research model based on the resource-based view (RBV) of the firm and finds support for a positive and complementary relationship between continuous training resources, functional fit capability and business process success. An increase in continuous training resources increases the functional fit capability for the organization and is seen to improve business process success. The results support the need to focus on continuous end user training throughout the post implementation phase as a key contributor to ERP systems success for any organization.

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