Sarbanes-Oxley Compliance, Internal Control, and ERP Systems

2011 ◽  
pp. 208-226
Author(s):  
Pall Rikhardsson ◽  
Peter Best ◽  
Claus Juhl-Christensen
Keyword(s):  
Enterprise Resource Planning ◽  
Internal Control ◽  
Academic Research ◽  
Resource Planning ◽  
Internal Controls ◽  
Erp Systems ◽  
Erp System ◽  
Sarbanes Oxley ◽  
Internal Control System ◽  
The World

The effort to comply with the Sarbanes-Oxley Act (SOX) has focused management attention in companies all over the world on the importance of assessing, developing, and maintaining an effective and efficient internal control system. Enterprise resource planning (ERP) systems are a crucial factor in developing such a system. Despite the attention this has attracted in practice, little academic research has focused on this area. This chapter addresses the question: How are ERP systems implicated in Sarbanes-Oxley compliance? It aims to show how SOX requirements regarding assessment and improvement of internal controls are related to the functionalities of an ERP system both in local and global implementations. It examines a solution (mySAP ERP) offered by one specific vendor (SAP) and what functionalities are relevant to global SOX compliance. Based on this, the chapter discusses likely developments regarding compliance functionalities in future releases of ERP systems.

The Impact of Enterprise Resource Planning (ERP) Systems on the Effectiveness of Internal Controls over Financial Reporting

2011 ◽  
Vol 25 (1) ◽  
pp. 129-157 ◽  
Author(s):  
John J. Morris
Keyword(s):  
Financial Reporting ◽  
Enterprise Resource Planning ◽  
Internal Control ◽  
Control Sample ◽  
Resource Planning ◽  
Internal Controls ◽  
Erp Systems ◽  
Individual Account ◽  
Sarbanes Oxley ◽  
The Impact

ABSTRACT: Software vendors that market enterprise resource planning (ERP) systems have taken advantage of the increased focus on internal controls that grew out of the Sarbanes-Oxley (SOX) legislation by emphasizing that a key feature of ERP systems is the use of “built-in” controls that mirror a firm’s infrastructure. They argue that these built-in controls and other features will help firms improve their internal control over financial reporting as required by SOX. This study tests that assertion by examining SOX Section 404 compliance data for a sample of firms that implemented ERP systems between 1994 and 2003. The results suggest that ERP-implementing firms are less likely to report internal control weaknesses (ICW) than a matched control sample of non-ERP-implementing firms. It also finds that this difference exists for both general (entity-wide), and individual (account-level) controls.

Information Technology Internal Control Items for the Post-Implementation Phase of Enterprise Resource Planning Systems

2019 ◽  
Vol 34 (3) ◽  
pp. 159-197
Author(s):  
Hsing-Jung Li ◽  
She-I Chang ◽  
Tawei Wang ◽  
Li-Min Chang
Keyword(s):  
Information Technology ◽  
Enterprise Resource Planning ◽  
Internal Control ◽  
Resource Planning ◽  
Internal Controls ◽  
Implementation Phase ◽  
Erp System ◽  
Enterprise Resource Planning Systems ◽  
General Guidance ◽  
Initial List

ABSTRACT Our understanding of relevant internal controls at the post-implementation phase remains limited in spite of general guidance from professional frameworks or standards. In this study, based on the COBIT 5 framework, we reviewed 56 studies from relevant academic journals from 1998 to 2014 to form an initial list of information technology (IT) internal control items for the post-implementation phase of enterprise resource planning (ERP) systems. An expert survey was conducted to validate the list, and 45 control items were ranked using the Delphi method. The proposed items may assist companies and auditors in focusing on essential internal control issues during the ERP system post-implementation phase.

Enterprise Resource Planning Systems

2010 ◽  
pp. 105-114
Author(s):  
Alok Mishra
Keyword(s):  
Information Technology ◽  
Competitive Advantage ◽  
Enterprise Resource Planning ◽  
Resource Planning ◽  
Erp Systems ◽  
Planning Systems ◽  
Erp System ◽  
Sustained Competitive Advantage ◽  
Enterprise Resource Planning Systems ◽  
The World

In the age of globalization, organizations all over the world are giving more significance to strategy and planning to get an edge in the competition. This chapter discusses the Enterprise Resurce Planning (ERP) systems effects and strategic perspectives in organizations. These are significant how information technology and ERP together facilitate in aligning the business in such a way so that it should lead to excellent productivity. It further explores in what ways effects of ERP system in organizations can provide sustained competitive advantage.

Enterprise Resource Planning Systems

2011 ◽  
pp. 1318-1326
Author(s):  
Alok Mishra
Keyword(s):  
Information Technology ◽  
Competitive Advantage ◽  
Enterprise Resource Planning ◽  
Resource Planning ◽  
Erp Systems ◽  
Planning Systems ◽  
Erp System ◽  
Sustained Competitive Advantage ◽  
Enterprise Resource Planning Systems ◽  
The World

In the age of globalization, organizations all over the world are giving more significance to strategy and planning to get an edge in the competition. This chapter discusses the Enterprise Resurce Planning (ERP) systems effects and strategic perspectives in organizations. These are significant how information technology and ERP together facilitate in aligning the business in such a way so that it should lead to excellent productivity. It further explores in what ways effects of ERP system in organizations can provide sustained competitive advantage.

Implementing ERP in an emerging nation

2017 ◽  
Vol 25 (1) ◽  
pp. 37-40
Keyword(s):  
Enterprise Resource Planning ◽  
Design Methodology ◽  
Resource Planning ◽  
Erp Systems ◽  
Content Type ◽  
Erp System ◽  
Organizational Functions ◽  
The World ◽  
Pertinent Information ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings The use of enterprise resource planning (ERP) systems has escalated over recent years. Implementing such systems helps companies to raise performance levels in line with other organizations around the world. A capacity to initiate change is one of the most significant features of an ERP system. It can, for instance, transform how different organizational functions connect. Existing practices are likewise subject to change. Scope also exists for ERP to significantly impact on the prevailing structure and culture of the company. Employees are not immune from its effects. Practical implications The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

scholarly journals Teaching eBusiness Concepts using SAP's OnLine Store

10.28945/2500 ◽  
2002 ◽  
Author(s):  
Paul Hawking ◽  
Brendan McCarthy ◽  
Susan Foster
Keyword(s):  
Enterprise Resource Planning ◽  
Strategic Alliances ◽  
Implementation Process ◽  
Resource Planning ◽  
Erp Systems ◽  
Online Store ◽  
Erp System ◽  
The Past ◽  
The World ◽  
The University

Many universities around the world have formed strategic alliances with Enterprise Resource Planning (ERP) systems vendors to incorporate these types of systems into their curriculum. Over the past few years the sharing of curriculum resources between universities has facilitated this process. Universities are now struggling with the concept of how to develop e-business curriculum incorporating their existing ERP system. Universities are faced with firstly having to implement the available functionality and then develop the appropriate curriculum. This paper describes a student centric method to assist universities with this curriculum delivery. Students at Victoria University have implemented and documented the implementation process of SAP’s OnLine Store. This documentation will be freely distributed to other universities to assist them with their implementation. Staff at the University are in the process of developing ebusiness curriculum based on the OnLine Store which will also be distributed to other universities.

Enterprise Resource Planning Systems

2009 ◽  
pp. 57-66 ◽  
Author(s):  
Alok Mishra
Keyword(s):  
Information Technology ◽  
Competitive Advantage ◽  
Enterprise Resource Planning ◽  
Resource Planning ◽  
Erp Systems ◽  
Planning Systems ◽  
Erp System ◽  
Sustained Competitive Advantage ◽  
Enterprise Resource Planning Systems ◽  
The World

In the age of globalization, organizations all over the world are giving more significance to strategy and planning to get an edge in the competition. This chapter discusses the Enterprise Resurce Planning (ERP) systems effects and strategic perspectives in organizations. These are significant how information technology and ERP together facilitate in aligning the business in such a way so that it should lead to excellent productivity. It further explores in what ways effects of ERP system in organizations can provide sustained competitive advantage.

Smoothing Short Duration Capacity Problems in Enterprise Resource Planning (ERP) Systems: An Algorithmic Approach

2014 ◽  
Vol 933 ◽  
pp. 860-868
Author(s):  
Muneam Zamzeer Al-Magsoosi
Keyword(s):  
Short Duration ◽  
Enterprise Resource Planning ◽  
Lot Sizing ◽  
Environmental Parameters ◽  
Resource Planning ◽  
Successful Implementation ◽  
Erp Systems ◽  
Lot Size ◽  
Erp System ◽  
Order Release

Successful implementation of ERP systems should take full advantage of the access to information, but not be constrained by many of the deficiencies associated with infinite capacity scheduling methodologies. In this paper an algorithm is developed which improves the performance of the ERP system. Lot sizing decisions based on capacity availability are used as an instrument to integrate more effectively capacity requirements planning (CRP) and Material Requirements Planning (MRP). MRP is a planning tool for a sub-set of manufacturing system specially in hierarchal multi-product, multi-period and multi-stage production planning and inventory control system. The Vehicle used for this integration is planned order release (POR) quantity. The algorithm requires minimal deviation from the MRP logic. In this sequential process MRP first issues the action notices and then the algorithm analyses the capacity situation in the work centers. The algorithm scans all planned order release quantities of lower level items in the action bucket before orders are released to the shop. For each item a delta value is computed identifying the degree orders are contributing to capacity problems. This delta is specific to each POR. The POR causing the highest overload and the one passing through the lowest utilized work centers are selected for a lot size decrease, respectively, an increase. After identifying the candidates, a series of checks analyses the suitability of the candidates for that change. The planned order release quantities of more items can be performed. Projected capacity profile after iteration will be updated and capacity requirements over a short duration are smoothed. The experiments are performed with MAP/3000 as a simulation model for this study. The developed algorithm is added to MAP/3000 as additional subroutines. The design of the experiments consists of a base test identifying the significance of different environmental parameters of MRP systems and a main test which performs a detailed evaluation. The results are evaluated using analysis of variance techniques. Most ERP systems built on the historical development of MRP and CRP systems, and the assumption of infinite capacity is affecting the performance of those systems badly. This paper is presenting an algorithm to smooth capacity problems by using the existed capacity.

Quantified benefit of implementing enterprise resource planning through process simulation

2004 ◽  
Vol 31 (2) ◽  
pp. 263-271 ◽  
Author(s):  
Sangyoub Lee ◽  
Ahsan Ullah Arif ◽  
Hyounseung Jang
Keyword(s):  
Enterprise Resource Planning ◽  
Management System ◽  
Construction Materials ◽  
Resource Planning ◽  
Application Integration ◽  
Erp Systems ◽  
Materials Management ◽  
Erp System ◽  
Internal Integration ◽  
Management Functions

The enterprise resource planning (ERP) system can integrate the major business management functions of the enterprise with a single common database to allow sharing of all information and achieve efficient communications between management functions. Based on the needs of running a construction enterprise, ERP shows potential applicability to the construction industry. This paper sought to quantify the benefits of ERP systems when applied to construction materials procurement. Specifically, this paper briefly described the business processes involved in construction materials procurement and illustrated how ERP systems could be implemented and the efficiency of the construction materials management system consequently enhanced. The transformation from a non-ERP system into an ERP system through application integration, internal integration, external integration, and automation were simulated. Results show that the individual task improvements of models can increase the productivity of the materials management cycle by up to 5.2%, 18.2%, 27.8%, 13.5%, and 79.2% through internal integration, external integration, application integration, automation, and ERP system, respectively, by automating most of the repeated transactions and reducing manpower required to perform the tasks.Key words: enterprise resource planning, materials management system, productivity, simulation.

Enterprise Resource Planning (ERP) Systems: An Empirical Analysis of Benefits

2004 ◽  
Vol 1 (1) ◽  
pp. 63-72 ◽  
Author(s):  
Daniel E. O'Leary
Keyword(s):  
Empirical Analysis ◽  
Enterprise Resource Planning ◽  
Resource Planning ◽  
Business Case ◽  
Data Repository ◽  
Erp Systems ◽  
Erp System ◽  
Intangible Benefits

This paper uses a database, derived from a data repository, in order to do an analysis of enterprise resource planning (ERP) system benefits. ERP benefits are important for a number of reasons, including establishing a match between what ERP systems benefits are—as compared to ERP expectations—setting a benchmark for other firms, and measuring those benefits. ERP benefits also are central to the business case for deciding whether a firm will invest in an ERP system. It is found that some benefits vary across industry, while others seem to be important to firms independent of industry. In particular, tangible benefits are largely industry-independent, while intangible benefits vary across industry. In addition, when compared to an earlier study by Deloitte Consulting, the results are statistically consistent with their findings, but find substantial additional intangible benefits.

Sign in / Sign up

Export Citation Format

Share Document