Internal Audit Function response to ERP Systems Implementation

The internal audit function (IAF) importance has been highlighted by legislative and professional responses to various financial scandals. On the other hand, Enterprise Resource Planning (ERP) systems have institutional logics in controlling business process that pressure the IAF to change. Based on the institutional theory a conceptual framework is formulated to explore the IAF change as a response to ERP systems implementation, wherein ERP systems are considered as carrier of new institutional logics. Interpretive approach has been adopted by conducting an in-depth case study in a multinational organization in Egypt. Interviews with variety stakeholders were chosen as the primary data collection method besides careful examination of available documents. Data have been analyzed using directed content analysis based on coding the transcribed interviews. The study results are enhancing the understanding of the IAF change and provide additional lessons that could be useful in improving the IAF in organizations that implement ERP systems. Keywords ERP, SAP, Internal Audit, Corporate Governance, Case Study, Interpretive, Egypt, Content Analysis

Relationship between accounting benefits and ERP user satisfaction in the context of the fourth industrial revolution

The importance of corporate social responsibility is shaping investment decisions and entrepreneurial actions in diverse perspectives. The rapid growth of SMEs has tremendous impacts on the environment. Nonetheless, the economic emergence plan of Cameroon has prompted government support of SMEs through diverse projects. This saw economic growth increased to 3.8% and unemployment dropped to 4.3% caused by the expansion of private sector investments. The dilemma that necessitated this study is the response strategy of SMEs operators towards environmental sustainability. This study, thus seeks to examine the effects of entrepreneurial intentions and actions on environmental sustainability. The research is a conclusive case study design supported by the philosophical underpins of objectivism ontology and positivism epistemology. Data was sourced from four hundred (400) SMEs operators purposively sampled from the Centre and Littoral regions of Cameroon using structured questionnaire. Data was analysed using the Structural Equation Modelling technique with the aid of statistical packages including: SPSS 24 and AMOS 23. The study revealed that entrepreneurial action has weak positive statistical significant impacts on environmental sustainability; whereas entrepreneurial intention has strong positive statistical significant effects on environmental sustainability. Entrepreneurial intention comprised of self-efficacy and perceived control whereas, entrepreneurial actions involved entrepreneurial alertness and uncertainty. This study concludes that entrepreneurs in Cameroon have sustainable intentions to protect the environment but; the current actions taken are inadequate. This research recommends that entrepreneurs should enhance efforts toward attaining the state of genuine sustainabilit

The dilemma of internal audit function adaptation: The impact of ERP and corporate governance pressures

© Emerald Group Publishing Limited. Purpose: The purpose of this paper is to provide a conceptual framework that helps to investigate how the internal audit function (IAF) responds to both the introduction of the control logic of Enterprise Resource Planning (ERP) systems, and corporate governance’s (CG) institutional pressures. Furthermore, the paper aims to articulate the concurrence between the external pressures of CG and internal control logic of ERP systems. Design/methodology/approach: The paper presents a review of the normative literature pertaining to the increase in significance of CG in the light of the worldwide economic crisis. The paper highlights a literature gap related to the lack of studies focusing on the impact of ERP systems implementation on the IAF practices. Findings: The authors articulate institutional theory to formulate a conceptual framework that explains the reciprocal interplay between the macro external governance pressures, micro internal institutional logics inscribed in the ERP systems and their effect on IAF practices and structure within organisations. Research limitations/implications: The paper is conceptual in nature and therefore the proposed framework will be subsequently validated using a qualitative research approach in future research. Practical implications: The conceptual framework would offer the internal auditors some strategies for enabling adaptation to the different internal and external pressures. Also the paper provides a platform for research community to investigate the influence of CG and ERP systems implementation on IAF adaptation. Originality/value: The paper provides a clearer articulation of the various constructs that affect the IAF, which has gained great attention for assuring good CG

IMPACT OF ENTERPRISE RESOURCE PLANNING (ERP) ON INTERNAL AUDIT FUNCTIONS

The purpose of this paper is to find out why internal auditors must have the skills and abilities in the field of technology in carrying out their activities in the company on the basis of an ERP system. An ERP system is a tool that integrates all company functions in a more accurate system. Design / Methodology / Approach: Library research by emphasizing how the challenges of current internal auditors in facing technological advances (ERP) in the company. Findings: That ERP has a significant impact on the Internal Auditor. Therefore it is necessary to improve the skills and abilities of the Auditor in using technology so that they can develop their HR through training or training related to the ERP system. Originality: This paper tries to emphasize why internal auditors must have the skills and abilities in the field of technology and how the challenges faced by internal auditors change. Keywords: enterprise resource planning (erp), internal auditor function. DOI: 10.7176/RJFA/10-9-05 Publication date:May 31st 201

Extending the enterprise: An evaluation of ERP and EAI technologies within a Case Study organisation

It is widely understood that both Information Technology (IT) and Information Systems (IS), provide great benefits in improving the visibility of supply and value chains within and across organisational boundaries. Those enterprises which can realise the benefits of extending their core business processes outwards to clients and trading partners, will be able to create unique supply chain-dependent products and solutions. Thus, such business infrastructures have enabled organisations to expand and improve the effectiveness of their enterprise. One method to achieve this, has been to integrate Enterprise Resource Planning (ERP) systems with web-based and other IS systems, using Enterprise Application Integration (EAI) technologies. This paper seeks to investigate those factors which contributed to a case organisation’s extended enterprise experiences, by using extant ERP and EAI implementation IS evaluation criteria; and by placing the research results within the context of applicable IS research techniques in the area

Framework for Product Lifecycle Management integration in Small and Medium Enterprises networks

In order to improve the performance of extended enterprises, Small and Medium Enterprises (SMEs) must be integrated into the extended networks. This integration must be carried out on several levels which are mastered by the Product Lifecycle Management (PLM). But, PLM is underdeveloped in SMEs mainly because of the difficulties in implementing information systems. This paper aims to propose a modeling framework to facilitate the implementation of PLM systems in SMEs. Our approach proposes a generic model for the creation of processes and data models. These models are explained, based on the scope and framework of the modeling, in order to highlight the improvements provided

Identifying critical success factors of ERP systems at the higher education sector

In response to a range of contextual drivers, the worldwide adoption of ERP Systems in Higher Education Institutions (HEIs) has increased substantially over the past decade. Though the difficulties and high failure rate in implementing ERP systems at university environments have been cited in the literature, research on critical success factors (CSFs) for ERP implementations in this context is rare and fragmented. This paper is part of a larger research effort that aims to contribute to understanding the phenomenon of ERP implementations and evaluations in HEIs in the Australasian region; it identifies, previously reported, critical success factors (CSFs) in relation to ERP system implementations and discusses the importance of these factors

Characteristics of the Audit Processes for Distributed Informatics Systems

The paper contains issues regarding: main characteristics and examples of the distributed informatics systems and main difference categories among them, concepts, principles, techniques and fields for auditing the distributed informatics systems, concepts and classes of the standard term, characteristics of this one, examples of standards, guidelines, procedures and controls for auditing the distributed informatics systems. The distributed informatics systems are characterized by the following issues: development process, resources, implemented functionalities, architectures, system classes, particularities. The audit framework has two sides: the audit process and auditors. The audit process must be led in accordance with the standard specifications in the IT&C field. The auditors must meet the ethical principles and they must have a high-level of professional skills and competence in IT&C field.informatics audit, characteristic, distributed informatics system, standard

Issues with implementing ERP in the public administration

As governments work to transform their environments from an internal resource optimization to a process integration and external collaboration focus, integrated systems stand at the forefront of solutions that will achieve this goal. Enterprise Resource Planning (ERP) is proven to significantly increase efficiency, improve information access, reduce total cost of ownership, and help government achieve the highest levels of accountability and constituent service. Yet implementing ERP in a manner that achieves its promises is no easy task. Public sector organizations often rationalize their ERP modernization initiatives within the context of budgetary constraints and are faced with multiple ERP providers that, on the surface, are difficult to discern. In addition, adjudicating between competing ERP solutions on their functional merit is not only difficult because of the complexity of ERP systems, but it is further complicated by the intricacy of the government acquisition process. Therefore, it is particularly important that the business value be sold at the executive and political levels of government and, to be successful, that government embeds the ERP solution within its culture and processes. What's more, the level of detailed analysis required to map functional requirements to ERP solutions is an arduous task that, even if done thoroughly, hasn't always delivered a successful implementation. In this article, we will address these issues by examining the evolution and shortcomings of ERP solutions; by defining the features and functionality needed to address government transformation; and by recommending the steps to take to position for success.government, public organizations, ERP, integrated systems

The Effect of Effectiveness of ERP Use, Quality of Internal Audit to Transparency of Financial Report with Management Support as Moderation Variable

There are only few companies implementing the financial reports’ transparency in Indonesia. Those are only found in several government agencies, state- owned companies, but still few numbers of public companies (limited) and even non-public companies. From the results of this study, the researchers concluded that the use of Enterprise Resource Planning (ERP) effectively is one way of implementing Accounting Information Systems within the company that can help internal auditors work effectively and create transparent financial statements as well. This study discusses the Effect between the usage effectiveness of Enterprise Resource Planning (ERP), management support to the transparency of financial statements. The calculation method is using Partial Least Square 3.0 (PLS). This Research calculates Average Variance Extracted (AVE), Composite Reliability (CR, Cronbach Alpha, R Square, and Hypothesis Test) .The data collection methods in this paper use questionnaire with Likert scale. The sample in this research is 441. From the Result of hypothesis test, it describes the effect of effectiveness of the use of ERP to financial report transparency 27,8%, the effect of audit internal to financial report transparency 40,9% and the effect of management support to financial report transparency 14,9%. Management support variable has significant effect to the relationship between ERP effectivity and financial report transparency 9,1%. Management support variable has significant effect to the relationship between audit internal quality and financial report transparency 3%. Keywords: Enterprise Resource Planning, ERP, internal audit, financial report transparency, management support, PLS 3.