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ERP Audit Methodology: What You Need to Know
The process of researching, defining, and evaluating the efficacy of a business process is known as an ERP Audit. The ERP audit methodology ‘borrows’ key processes from other kinds of audits. We are all very afraid of financial audits (especially from our favorite governmental agency, the Internal Revenue Service), not only because of what they might or might not find, but because it could likely cost us quite a bit of money.
Nobody volunteers for an IRS audit. However, we hope that organizations look forward to ERP audits!
What is an ERP Audit?
An ERP audit evaluates all aspects of a business’s process, and makes recommendations on areas of improvement. In some cases, the toolset of an ERP system needs to be used to capture and evaluate extra information in order to achieve some of these goals.
How Are ERP Systems Audited?
For an ERP system to be audited accurately, the auditor must have significant experience in the industry in which the business operates. This allows the auditor to dig in and use industry experience to find tough issues and decide whether the current system is functioning optimally. In some cases, audit data is fed through a process to illustrate flaws in the system. Objective evidence is captured for illustration, and many times is not difficult to project the return on investment involved with improving a process.
An ERP auditor will produce a written document that explains the current state of the system, illustrates the projected value of the ERP system, and explains what the future state of the system could look like. Finally, an ERP audit will include specific illustrations and ROI projections.
An ERP audit should exist as a living document, and be revisited on a regular basis. Most companies can derive several years of continuous improvement projects from a single ERP audit.
Contact EpiCenter Today to Learn More About Our ERP Auditing Services
At EpiCenter, we believe Epicor Kinetic is the premier offering in the small to mid size manufacturing market. We have experienced staff that understand ERP audit methodologies. If you’d like to have an ERP audit done on your existing system(s), or if you have any questions regarding how ERP systems are audited, please contact us, and our team will be very happy to help.
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