The Impact of Enterprise Resource Planning (ERP) Systems on the Effectiveness of Internal Controls over Financial Reporting

Morris, John

doi:10.2308/jis.2011.25.1.129

Cited by 98 publications

(76 citation statements)

References 25 publications

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“…Therefore, internal control could be more effective in a fully automated and integrated IT systems. Morris (2011) finds that ERP-implementing companies are less likely to be issued internal control weakness opinions than other companies. However, auditors need to augment their knowledge and professional judgments when evaluating IT-based internal control systems.…”

Section: It Investments and Audit Risksmentioning

confidence: 99%

The Association between Information Technology Investments and Audit Risk

Han

Rezaee

Xue

et al. 2015

Journal of Information Systems

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SUMMARY:The advances in information technology (IT) have changed the way companies conduct business in using electronic commerce strategies, preparing financial reports and having their financial statements audited. Therefore, client firms' IT investments could have effects on audit risk. On one hand, the IT complexity creates challenges for auditors in auditing the effectiveness of internal control and detecting accounting irregularities. On the other hand, IT decreases audit risk by improving operation and internal control effectiveness which may decrease inherent and internal control risk. Yet, the relationship between clients' IT asset portfolios and audit risk remains an empirical question. Using proprietary IT data of US firms from 2000 to 2009, we find that IT investments are positively related to audit fees and abnormal audit fees, and negatively related to the probability of issuance of a going-concern audit opinion.Furthermore, we find that audit tenure moderates the above relationship due to the learning effect.

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Section: It Investments and Audit Risksmentioning

confidence: 99%

The Association between Information Technology Investments and Audit Risk

Han

Rezaee

Xue

et al. 2015

Journal of Information Systems

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“…Li et al [20] find that firms with material ISW make less accurate management forecasts than firms without material weaknesses in internal control and firms with only NISW. Morris [24] shows that firms with enterprise resource planning systems are less likely to report internal control weaknesses. Masli et al [21] and Chen et al [6] find that information technology improves the effectiveness of internal control and mitigates audit fee increases.…”

Section: Literature Reviewmentioning

confidence: 96%

Information systems and internal control: evidence from China

Deng

Xiao

Zhou

2016

Electron Commer Res

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Chinese companies are required to disclose weaknesses in their internal control systems, including information system weaknesses. This paper evaluates the impacts of information system weaknesses on firm performance relative to other internal control weaknesses to provide firms guidance on the construction of internal control. The organizational information processing theory suggests that firms with greater operational complexity demand better information systems to meet their greater informational needs, i.e., the quality of information systems has a stronger effect on the performance of more complex firms. We find that the adverse effects of information system weaknesses on performance relative to other internal control weaknesses are stronger for firms with greater operational complexity, consistent with the organizational information processing theory.

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“…If the technology is the prerequisite to ensure the security of the network, then the management is the most favorable guarantee of network security. Enterprise information is a systematic, integrated project, it is in the implementation process, there will be trivial links, which need to strengthen the organization of enterprises, strengthen the organization and leadership, from the policy to give strong support, and strengthen Information management, with a strong professional staff, supporting a series of measures [5] .…”

Section: Countermeasure For Enterprise Information Constructionmentioning

confidence: 99%

Research on Enterprise Information Construction Based on Computer Application Technology

Lai¹,

Liu²

2017

Proceedings of the 2017 4th International Conference on Education, Management and Computing Technology (ICEMCT 2017)

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With the deepening of the technological level of our country, especially the computer technology is not interrupted to improve, information technology should become a broad synonym for the development of Chinese enterprises, computer, network technology and information processing technology has become a business in the operation, management, production and other links Indispensable tools, more rational application of computer technology and a more complete information technology has become an enterprise in the future development of the important task facing. This paper mainly analyzes the characteristics of computer network technology and enterprise information itself, and the survival and future problems of enterprises, hoping to provide guidance for enterprises in the future enterprise information practice. Business computer application technology and information technology an enterprise using computer technology, network technology and a series of modern technology, the depth of information resources through development and widespread use, and constantly improve the production, operation, management, efficiency and level of decision-making, thereby enhancing economic efficiency and competitiveness of the process. Theoretical Introduction of Enterprise InformationEnterprise information is the business to business process (optimization) restructuring is based on a certain depth and breadth of the use of computer technology, network technology and database technology, all the information control and integrated management of production and operation activities, to achieve external enterprise sharing and effective use of information to improve economic efficiency and competitiveness in the market in a timely manner to provide accurate and effective data information and decision-making reference for business leaders.In fact, many companies building sites for the development of enterprises, it is not too practical, the site can't be delivered customer's ideas, but can't reflect the existence of the problem, they can't help enterprises grasp market trends, which is detrimental to the development of enterprises. Meanwhile, due to the lack of communication between the customers, they can't know the needs of customers, the stability of market channels naturally can't be guaranteed. In order to deal with unexpected situations timely discovery, causing the entire logistics enterprise information transmission system is still in its original level and did not give full play to the advantages of the network information construction [1] . Information technology is a process of advancing its development depends on three factors: First, the people on the deepening of understanding of their business activities, and second, the development of information technology, related to computing technology, network technology, artificial intelligence, etc. field; the third is on the business activities of IT penetration, the transformation ability and capacity that involves many technical systems. Enterprise information specific...

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The Impact of Enterprise Resource Planning (ERP) Systems on the Effectiveness of Internal Controls over Financial Reporting

Cited by 98 publications

References 25 publications

The Association between Information Technology Investments and Audit Risk

The Association between Information Technology Investments and Audit Risk

Information systems and internal control: evidence from China

Research on Enterprise Information Construction Based on Computer Application Technology

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