The Effect of Enterprise Resource Planning (ERP) on the Control Activities, Case Study: Steel Company
محورهای موضوعی : Business Strategy
Hashem Valipour
1
(
Firouzabad Branch, Islamic Azad University
Firouzabad, Iran
)
Mohammad Hossein Fatheh
2
(
Department of Management
Economics and Accounting
Payame Noor University,
)
کلید واژه: Enterprise Resource Planning, ERP, Internal control, Control Activities, COSO,
چکیده مقاله :
In the recent years, using organizational integrated systemshas been foremost in organizational projects all over the world. Inthis respect the most significant available mean is Enterprise ResourcePlanning (ERP). Competitive business environments, necessity of interand intra organizational integration and unity, and poor internal controlare the key reasons of developing Enterprise Resource Planning (ERP).This paper aims to study the relation between ERP and one of thecomponents of internal control (under the COSO), control activities,and to help the auditors to reduce time and costs of auditing relatedto the test of controls. It finally results in increasing the reliability offinancial reporting and reasonable assurance regarding the achievementof an organization’s objectives. The higher the reliability and assurance,the easier it will be for the management to make decisions andplan to reach short-term and long-term goals of the organization.Thisresearch mostly tries to focus on the financial parts of an organizationand contains two main hypotheses. The first hypothesis tries to see theeffectiveness of ERP implementation in an organization, and the second one measures these effects on 4 different financial segments, includingmanagement accounting, cost accounting, public accounting and financialaccounting.This study has been conducted as a case study and bydistribution of the questionnaire in four areas of Esfahan Steel Company.In this paper we have used the T-test and ANOVA to analyze thedata. According to the conducted tests, it seems clear that the ERPhave influenced on control activities in all those 4 parts. However, theimpacts are different in each segment.
