Implementation of ERP Systems: Accounting and Auditing Implications

Technology plays a key role in today's business environment. Many companies greatly rely on computers and software to provide accurate information to effectively manage their business. It is becoming increasingly necessary for all businesses to incorporate information technology solutions to operate successfully. One way that many corporations have adopted information technology on a large scale is by installing Enterprise Resource Planning (ERP) systems to accomplish their business transaction and data processing needs. The company named SAP Aktiengesellschaft (commonly known as SAP AG in the business press) is currently the world market and technology leader in providing ERP systems. As such, this paper primarily discusses information technology implications based on the SAP system. The remainder of this introduction provides an overview of ERP software in general, and a discussion of SAP’s ERP software. Section 2 discusses major technological and accounting issues involved in the implementation of SAP and ERP systems. Section 3 discusses data and information integrity and audit issues in ERP systems. The final section provides a conclusion.