Because of its very nature of having centralized

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Unformatted text preview: ster processing of data in an integrated manner. Because of its very nature of having centralized database the risk of single point failures is higher in ERP solutions hence Business Continuity and Disaster Recovery should be examined closely. 1.10 The broad areas to look in the IT Audit of an ERP solution are given below: IT Audit Manual Volume III 5 IT Audit Manual 1. The primary objective of Audit is to check whether the organization’s objectives in implementing ERP have been fulfilled. Here is important that the objectives have been listed in detail and not in general terms. 2. Audit should also ensure that the organisation has followed the structured steps involved in implementation of an ERP, such as Project Planning, Business & Operational analysis including Gap analysis, Business Process Reengineering, Installation and configuration, Project team training, Business Requirement mapping, Module configuration, System interfaces, Data conversion, Custom Documentation, End-user training, Acceptance testing and Post implementation/Audit support. 3. It should be verified if the implementation was done systematically, through detailed discussions, design & customisation, implementation and production. 4. It would be advantageous if the auditor has reasonable awareness of ERP, so that he can evaluate whether system is compliant with external regulations (for e.g. the provisions of Income tax or other fiscal laws are not ignored, and the Accounting Standards are consistently followed across the company). This would enable him to achieve better quality of the audit report. 5. In a large organisation where the quantum of data processed by the ERP is extremely voluminous, the analysis of patterns and trends proves to be extremely useful in ascertaining the efficiency and effectiveness of operations. 6. The auditor can use various tools and techniques to audit an ERP environment to address entire populations, highlight potential risk areas and efficiently perform an audit. ERP not only interfaces to/from non-ERP systems, but also may serve as a web-enabled environment-where the boundaries of the processes extend beyond the ERP itself, and it becomes imperative that too...
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