ERP SYSTEMS AND INTERNAL AUDIT

From an internal audit perspective, enterprise systems have created new opportunities and challenges in managing internal as well as external risks. In this work, we report results of a survey that examines internal auditors ’ ability to identify and manage operational, financial, technological, compliance and other risks as the organization migrates to an ERP environment. Our findings show that the internal auditors perceive a reduction in financial and operational risk and an increase in technical risks. These effects are somewhat mitigated by their ability to assess and manage these risks. We also find that internal audit departments satisfied their needs for ERP skills not by outsourcing but by providing staff with in-house training