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Unformatted text preview: es, multiple period accounting and languages. • Improves information access and management throughout the enterprise. Auditing ERP Systems 1.7 An ERP solution by its very nature has some peculiarities which have to be considered while planning and conducting the audit. Some of these are given below: 1.8 Implementation of an ERP solution goes closely with not only business process reengineering but also with organizational remodelling; these may be extensive in nature. Hence it is very important to evaluate whether the auditee understands the full import of going for ERP and whether it has enough organizational resilience and flexibility to undertake the project. Many ERP projects have failed not because of technical deficiencies but because of a mismatch between the management aspirations and organizational compliance. 1.9 The database is usually centralized and as the applications reside on multiple users the system allows flexibility in customization and configuration. The processing is real time online whereby the databases are updated simultaneously by minimal data entry operations. The input controls are dependent on pre data acceptance validation and rely on transaction balancing. Thus time tested controls such are batch totals etc are often no longer relevant. Since the transactions are stored in a common database the different modules update entries into the database. Thus database is accessible from different modules. Moreover the authorization controls ere enforced at the level of application and not the database. As a result the security control evaluation is of paramount importance. Accordingly the auditors have to spend considerable time understanding the data flow and transaction processing. Since the system is heavily dependent on networking on a large scale with increased access from not only users but also business associates and customer's networks and database security are important areas to look into. Vulnerability by increased access is a price that is paid for higher integration and fa...
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This note was uploaded on 10/27/2013 for the course LAW 10-100 taught by Professor Parsons during the One '10 term at Bond College.

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