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Enterprise Resource Planning (ERP) Systems


Enterprise resource planning (ERP) is an overall business management system that caters to all organizations connected. Every organization uses a variety of resources in achieving its organizational goals. ERP is an enterprise-large information system designed to coordinate all the organization resources, information, and activities needed to complete the business processes, such as fulfillment or billing. In addition, financial and accounting systems are an essential and integral part of the systems.

An integrated ERP system has been based on a common database and a modular software design. The shared database can allow every business’s department to store and retrieve information in real-time.

The information should be obtainable, reliable, and easily shared on the ERP system. Ideally, the data of the organization for the various business functions are integrated.

Today, enterprise resource planning systems can cover many functions and integrate them into one unified database. Some of the ERP’s are SAP, Oracle, MFG Pro, etc.

Features of the ERP system

  • An ERP system is a system that caters for all types of needs of an organization and provides the right data and right point of time to the right users for their purpose. Hence, the definition of an ERP system may change from organization to organization.
  • An enterprise resource planning (ERP) system uses a single database and contains all data for various software modules.

These software modules include the following:

  • Manufacturing
  • Financials
  • Human resources
  • Supply chain management (SCM)
  • Customer relationship management (CRM)
  • Data warehouse, etc.

Benefits of an ERP system

  • Information integration
  • Reducing of lead-time
  • Reduction in cycle tim
  • Increased flexibility
  • Reduction quality costs
  • On-time shipment
  • Use of latest technology
  • Better customer satisfaction
  • Improved supplier performance

Type of access in ERP
Access in ERP can be allowed /disallowed for master data, transaction data reports. When assigning access to different users, the following options are possible:

  • Create- Allows creating of data
  • Alter- Allows altering data
  • View- Allows only to view data
  • Print- Allows to print data

Audit of ERP System
An ERP audit is an investigation into phase of organizations ERP systems with an opinion as to the adequacy of the ERP. An ERP audit expresses an opinion on whether the records and processes are adequate.


  • The fundamental purposes of an audit of controls do not change in an environment. Therefore, when evaluating controls over systems, decisions must be made regarding the significance of operational internal control plans to information technology (IT) controls.
  • Specific control plans for audit objectives must be tested.
  • Systems should produce accurate, complete, and authorized information that is supportable and timely.
  • In a computing environment, this is attained by a combination of controls in the system and controls in the environment in which the system operates, including its operating system.
  • Controls are divided into general controls and application controls
  • Some of the questions auditors should ask during an audit are pretty much the same as those that should be asked during the development and implementation of the system:
    • Does the system process according to GAAP and GAAS?
    • Does it meet the needs for all reporting, whether regulatory or organizational?
    • Were adequate user needs developing through meaningful interaction?
    • Are all system resources protected from unauthorized access and use?
    • Are user rights based on what is called ‘role-based access? Is there a system administrator with clearly defined responsibilities?
    • Is it functionally acceptable?
    • Are user requirements met?
    • Are users happy?
    • Can the system provide management with suitable performance data?

At AJSH, we assist our clients in dealing with implementation and transition of ERP which helps to expand business, reducing costs, and improving operations with providing adequate guidance and support from our end. If you have any questions or wish to know more about ERP systems, kindly contact us.


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