COSO internal control system consists of five elements, namely the control environment, risk assessment, control activities, information and communication, monitoring, involving company-level controls, control and information systems overall control of business activities. With the ERP on-line operation of the system, the construction of corporate internal control system should be carried out simultaneously with the construction of ERP systems.
1 ERP formation process control specification
First, we must establish ERP internal control procedures, clear internal control objectives and content of the different stages of defining internal control departments, business units and ERP project implementation responsibilities of the parties members. For the pilot, promotion units, to establish a work program to promote the pilot units and units, respectively. Project start-up and design the blueprint stage, mainly to define the scope of internal control, combined with ERP blueprint design modeling, preparation of internal ERP and Business Process Architecture blueprint table.
Gap analysis phase, the main business blueprint, the existing internal business processes, system configuration variance analysis, modeling carry out quality checks and ERP blueprint blueprint confirmation, a blueprint for the ERP business process integration, process modeling after checking the quality of integration. Control specification phase to establish ERP system, ERP system is the main test run, carry out ERP process risk identification and control design, modeling and control risk.
In the process testing and release phases, according to the enterprise system operation, management audit tests carried out on previously established risk control and process control for acceptance, updated sound internal control standards to achieve integration and docking ERP business blueprint and internal control processes, revision internal Control Handbook, issue a final business processes.
Effect on line 2 ERP system internal control
2.1 ERP on-line impact of the original system
As the ERP system will be tightly integrated business processes and financial companies will face two choices: ERP system to replace the existing system; legacy systems to interface with the ERP system. Enterprises should business perspective, combining business and information technology goals, determine implementation patterns will be taken.
a. Replace existing business systems, such as: ERP system procurement module will replace the original material procurement system.
b. Increased interface with existing business systems, if not completely replace the important business or financial system, the system will create an interface with existing ERP systems, such as: the establishment of financial management of the interface between the ERP system and the general ledger system.
2.2 ERP influence on the line of the original process
The companies use ERP systems management tools as enterprise management platform, before the implementation of the ERP system, you must first conduct business blueprint, in this process the original internal business processes also bring about fundamental impact.
2.2.1 New Business Process
Original control is achieved by controlling the service transaction basis, the ERP embodiment , the maintenance process as the main data and additional separate flow control embodiment. Such as product sales price, according to the Ministry of Finance the actual invoice price as the basis for accounting treatment, while the price for review. And after application of ERP, a new master data maintenance process.
2.2.2 update business processes
ERP system implementation will affect the structure and implementation of the original business process, including: mode change process implementation, many aspects of the process of the original service mode is changed to the manual processing in the ERP system; flow structure changes after the line, processed by many business operations to move the front end of the rear end of the ERP system, part of the business aspects have been adjusted, cause structural changes of the entire process.
2.2.3 The importance of process change
After ERP system embodiments, due to the risk of the business process to move from the front end of back-end business service, while the corresponding control measures also transferred to the front end service (for example: procurement process to increase the accuracy of the control of the purchase order), so that the business processes should be adjusted to general business processes critical business processes.
2.3 ERP influence on the risk of the original line
ERP is a strategic issue, not just a technical issue, foundation management practices is a prerequisite for ERP implementation. In business process optimization process, we will increase the risks associated with ERP systems, so the risk will affect the original database.
2.3.1 ERP system to bring new Master Data Procedures such as new control risk, the new master data processes, bring new risk control:
a. Construction in progress to funding transaction type definition is incorrect, resulting in accounting treatment is incomplete, inaccurate.
b. Accounts master data incomplete and inaccurate.
c. Add / Change of accounts master data has not been effective for approval.
2.3.2 ERP systems business processing mode change brings risk
For example, due to changes in the way business processes ERP systems to bring about change risk:
a. Voucher batch input posting operation is not correct, the impact of accounting documents for completeness and accuracy.
b. Without valid approval during the switching material.
c. Cancel material document without valid approval.
d. Differences in treatment has not been effective distribution approval.
Effect of 2.4 ERP of the original control line
ERP system to improve the level of automation and control execution, in addition, the system operational, financial, management and other internal integration, part of the control measures also transferred from the front or to extend financial services to the business departments. Thus, on-line control of the ERP produces the following effects:
a. ERP system automatically controls replace the original manual control, e.g., to confirm sales, issued costing.
b. The use of ERP systems to bring change in the form of control, for example, sales audit, because the accuracy of the order determines the accuracy of the data recorded in the general ledger, it is effectively controlled by the financial audit into the business of auditing.
2.5 ERP on-line impact for rights management
With such a large integrated ERP system gradually being adopted, if the system is authorized properly, the risk of business operations will be greatly enhanced. This risk includes two aspects: First, let more employees had no need to know this information can keep abreast of this information greatly increases the likelihood of leaks; the second is not necessary so that the original operation or processing of these employees have the information these powers, increasing the likelihood of management out of control. Therefore, it should also establish access control policies.
3 ERP system to promote the role of internal control
ERP system implementation, the standardized business processes, promote management improvement and enhance relevant business information security , reduce internal risk enterprise, which is the ERP system to strengthen the internal control system, boost business advantage.
3.1 strengthen the whole process of management control activities
Enterprises in the ERP system to adapt to the concept of process management, full reference standard processes designed to continuously optimize business processes, enhance existing processes, formulate a unified coding standard, comprehensive data plan, a complete collection of basic data, strict data doorway, forming a flexible production, personalized service, increase customer satisfaction, market integration process integration, research and production, provides the means to plug the loopholes. By applying ERP system, it can easily carry out the overall design of the internal control system, better business processes of enterprises overall coordination. Of "point" is controlled to the traditional environment, in the ERP system, can be developed into a "line" and the "face" of the multi-dimensional control. It can be said, ERP system will enable internal control "preventive function" into full play, and play a preventive function is the best way to strengthen enterprise risk control.
3.2 financial management and control in order to drive the overall business management and control
Financial management as the core ERP system is a fully integrated enterprise-oriented financial system, financial services for the business. In the ERP system, Finance and the business more closely in information flow, logistics and cash flow occurring in every business, finance can obtain relevant business information, financial sector through a comprehensive analysis of this information for cost effective business monitoring and management; effective integration of all aspects of traffic flows through the financial management and control, all departments have been effectively controlled and monitored, so that prior budget and control and, after the accurate accounting. Analysis of financial department of the relevant information can predict risks behind the data, such as daily analysis of the operational risk management, through inventory analysis, accounts receivable analysis, solvency analysis, profitability analysis, comparative analysis, budget execution, and compared with the same industry, potential business risk and financial risk prediction and control exercise due diligence in order to facilitate senior management decision-making.
All in all, the implementation of ERP system for enterprises to strengthen internal controls, business process optimization has a positive meaning, in the ERP internal control, the need to strengthen the understanding of the system itself, in-depth analysis of the ERP system brought about profound changes and broad impact, select reasonable time, active intervention. ERP systems boost internal control management is a sophisticated spiral development process, the internal control system is also bound to use as the ERP system itself is constantly revised and perfected, companies must run in the ERP system for the internal control system has been built the ongoing process of evaluation results, in order to senior managers to make a clear assessment of the effectiveness of internal control, providing data to support its complete optimization of the future; and internal management maturity will also push updated sound ERP system.
Reproduced in: https: //www.cnblogs.com/sinlang5778/p/3622357.html