3.2.5. Production phase
The factor of success in this phase is to put in a real
situation; functional, technical and organizational measures to minimize
discoveries during production transition.
Key activities:
3.2.5.1. Prepare the structure
This phase is launched with the training of users. It includes a
theoretical and a practical part.
During the first months after the switch it is often desired
to implement local support. It is like a filter between user and help desk to
resolve problems that needs additional training.
3.2.5.2. Simulate actual operation These operations
simulate the final production scale.
It will therefore test the switch plan, based on real data,
get in position to do work expected daily, weekly, monthly. This simulation is
done by the most advanced resource projects (functional representatives and
consultant).
Beyond the switch test, this step allows to improve tools and
methods for controlling additional data.
4. ERP System Audit and Control Risks
4.1. Reasons for an ERP System Audit
ERP audits and reviews can be justified by outlining the
wide-ranging consequences of undertaking an ERP implementation. If implementing
a system can impact a company in a multitude of ways then there will be a need
to monitor and control such an implementation as well as ensure its continued
success. Implementing an ERP system will significantly increase risks which in
turn will require the establishment of mitigating controls and a mechanism for
monitoring such controls.
4.1.1. Increased Risk
Enterprise Resource planning systems use data from a wide
range of business areas to provide cross-departmental management and process
information. Such systems manage the core critical business processes of an
organization. Implementations can fail to deliver expected results if not
adequately managed and controlled. Furthermore, there are emerging trends and
changing technologies that support expanded use of ERP systems (such as,
web-enabled customer interfaces), which will increase the importance of the
security and control consideration for ERP. Hence, an ERP implementation will
have wide ranging impacts on the technology, people and processes of an
organization and its trading partners.
4.1.2. Higher Levels of Regulation
Perhaps the greatest justification for an ERP audit at this
point in time is the increasing
levels of regulation being imposed on
organizations. In the wake of corporate financial
scandals, governments and
regulatory agencies are responding to failing investor
confidence by implementing new regulations. In the United
States for instance, stricter reporting rules, such as those defined in the
Sarbanes-Oxley Act of 2002, require company executives to certify the accuracy
and legitimacy of corporate financial statements or face the possibility of
punitive and criminal action. European Union members are mandated to report
financial results as per the International Accounting Standard (IAS) by 1
January 2005. At that time, they also have to restate 2003 and 2004 results,
per the IAS. Further, IAS is going global. In addition to the EU, Hong Kong,
Korea, Singapore, Australia, Canada, and most recently, Russia have announced
either their support for, or adoption of the IAS. The U.S. Financial Accounting
Standards Board is conducting discussions with the IAS board on the
reconciliation of differences between the two standards. Multinational
corporations may have the added burden of complying simultaneously with the
Sarbanes-Oxley Act and the IAS, as well as a host of local regulations in the
countries in which they operate.
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