The role of audit functions in enterprise resource planning projects in a selected organisation in South Africa

Thesis (MTech (Business Information Systems))--Cape Peninsula University of Technology, 2018.Enterprise resource planning (ERP) systems integrate business processes (BPs) into one database, facilitate data sharing, and provide real time information to authorised users, leading to an increase in efficiency and effectiveness. However, the implementation of an ERP system is not always a success as some systems turn out to be misaligned with the organisation’s objectives. This misalignment can lead to inadequate controls within the system. ERP systems are designed to improve transactions within the BPs and provide a competitive advantage to organisations. However, this benefit can become a weakness if project implementation fails due to controls in the system not being aligned with the objectives. The aim of the study is to explore how audit functions can contribute to the implementation of ERP projects, and the objective is to propose a guideline that can improve the implementation processes of ERP projects. To address the aim and meet the objective of this study, two main questions are asked: 1) What are the factors to be considered when introducing audit functionality in the implementation of an ERP system? 2) How can audit functions assist organisations in ERP project implementation? A subjectivist philosophical stance is followed and the epistemology lies within the interpretivist paradigm. An inductive research approach is followed and a case study is used as research strategy to conduct the research. The unit of analysis is the Operation Finance and Information Technology departments within the selected organisation, while selected employees (14) within the organisation form the unit of observation. A non-random, purposively selected sampling technique was used. Data were collected by means of semi-structured questionnaires through interviews. Data were analysed by summarising, categorising, and applying thematic analysis. The data analysis shows that audit functions (Operation Finance department, internal and external auditors) bring objectivity and assurance to the project in terms of financial reports, checks and balances, processes, structure, and internal controls. Getting people to cooperate however is a challenge for audit functionalities, and internal and external auditors can be a challenge during project implementation because their practical skills and computer-based knowledge to deal with huge volumes of data is extremely limited. It is highly recommended that the guideline presented in this research is followed, that engagement of audit functions with business processes is introduced and adopted by other role players involved in the project implementation process, and that audit functions should not be seen as a ‘must have’ but rather as support to improve the process. Ethical requirements as requested by CPUT are fulfilled