An applicable approach for internal control testing in ERP
Wan Jianguo, Li Tingliao · 2016
ERP systems have fundamentally changed the way of business data processing. These changes have affected the internal control system of ERP inevitably. Many traditional internal control testing approaches could not work well in ERP environment. In ERP systems, many control criteria and control procedures can be achieved by control data. In this paper, we proposed an applicable approach to test internal controls by checking various types of control data. This approach contains four steps. First is to understand the key business process, second is to identify critical controls points in these processes, the third is to check control data which represented the critical control to test the effectiveness of internal control, and the fourth is to evaluate the history of control data. A practical case is provided at the end of this paper to describe the applicability of this approach.