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Home » How much does ERP cost » How are ERP systems audited?
ERP auditing is the process that reviews and tests the functioning of ERP software. The prime motto of it is to check whether respective modules of an ERP system are solving the problems accurately and managing the workflows effectively. This constant check-up helps gain greater improvements in the business systems.
However, there is no single solution to your ERP auditing since the review and test processes are solely dependant on the applications, software, and prime business objectives.
The different types of auditing that can be performed include Process Audit, Compliance Audit, Security Audit, System Audit, and Waste Audit.
In the compliance audit, you need to evaluate if documented processes are being followed by individuals. It can also check if all touchpoints with respect to the ERP system are covered which means that they are fully compliant.
The process audit deals with auditing particular processes of the system, for example, ERP audit of purchase order processes. Here, the audit will check if purchase orders have been set within the levels of ERP or not.
The System Audit is another type of ERP audit that can be carried out from the perspective of the systems at your workplace. It will check if an appropriate network or hardware is available for the efficient use of ERP.
A security audit is another highly significant type of ERP audit that needs to be taken into consideration for better improvement in the business processes. It starts with identifying the users that have direct access to the data or with making the data open for all appropriate persons.
Here let us understand more about how to audit ERP and how it is reshaping businesses in today’s competitive world.
The Process of Auditing ERP Systems includes the following-
Understanding the objectives of auditing helps you to get aligned to your business goals and ensures that your audit process is successful.
Take an example of a waste audit in which the main objective would be to check for overproduction issues in the supply chain area.
Making a team of auditors is the most important step. Also, you should check for a person who can test and review the ERP software accurately with respect to your business objectives. Besides engineering or an IT team, take valuable insights from the daily users of the system.
For effective ERP auditing, you should consider the simplicity of your ERP system to review and audit issues. In order to develop a simple process for raising and reviewing auditing results, it is most crucial to launch a sturdy and successful project.
Once you have checked the system issues, you should rectify the data that needs to be recorded. Usually, the typical descriptions would talk about the issue briefly and the details of the auditor who identified the problem. Hence, such ERP audits need to be considered precisely.
Whenever the audit gets finished, it is quite important to keep the issues as per priority. However, the issues will depend upon the severity and then should be allocated to the relevant team members. This way, you can make your auditing relevant and precise. Hence, investing in the right resources and time can make every needed change within the modules.
There are a number of reasons why ERP auditing should be carried out. These reasons include-
You should identify if your ERP modules are segmenting accurate data or not. Also, ERP auditing helps make major improvements to offer safety from those parts that might harm your business to a greater extent.
Suppose you have been operating in a regulation type of industry, then establishing regular ERP audit will make sure that your ERP system is adhered to the regulations and rules to give cross-supply chain compliance and streamlined work process.
Keeping the ERP system up to date is very critical since this deals with important assets and data of your company. If particular modules of the system are dominating the system performance then, it should be immediately get checked through ERP auditing.
Since your ERP is leveraged by broad businesses, you should consider some obvious errors due to which the productivity of your business processes could be dropped down. However, an ERP audit will make systematic moves and will remove all errors occurring within the system.
Cutting the costs is one of the prime objectives of organizations at present and hence they prefer investing in different types of ERP solutions that will suit their requirements. But, it will be of more worth if an ERP system offers consistent high-grade ROI.
To make sure that the system is giving you consistent ROI, regular auditing would be the key process. This will make sure that every application is supported properly and there is no lag in the system.