Auditing in an ERP environment

Abstract

Many organizations have implemented ERP packages in order to standardize their business processes and to improve their operational efficiency. ERP packages offer organizations the possibility to share and collect financial data into one single database, that is able to produce financial reports such as income statements or balance sheets. To make sure that these reports are free from material misstatements, an external audit firm is hired. External auditors have to determine whether the figures, produced by an ERP system, are truly representing an organization’s financial position. However, while much research has been done in the field of ERP systems and auditing in general, little is known about how ERP systems transform the external audit profession. Therefore, in this paper, it is examined from an actornetwork perspective how the daily practices of external auditors have been changing as a result of the usage of ERP systems. It does so by conducting a qualitative case study in an accounting firm. Furthermore, it is investigated what additional expertise is required for external auditors to perform an audit in an ERP environment.