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The role of internal auditors in ERP‐based organizations

Haider H. Madani (Department of Accounting and MIS, College of Industrial Management, King Fahd University of Petroleum and Minerals, Dhahran, Saudi Arabia)

Journal of Accounting & Organizational Change

ISSN: 1832-5912

Article publication date: 30 October 2009

3240

Abstract

Purpose

The purpose of this paper is to develop a theoretical framework that will help to examine the role of internal auditors (IAs) in enterprise resource planning (ERP) based organizations. An ERP integrates all organizational functions in one powerful system that drives the organization strategically and also presents new challenges to the internal audit function.

Design/methodology/approach

A literature review is undertaken to highlight the role of IAs in an ERP environment.

Findings

The framework depicts the new relationships which the ERP system requires between the IAs and five associated groups: software vendors, information systems, information technology managers, ERP users, and consultants. ERP also gives interanl auditors an enabling technology to advise management on the implications of ERP for risk‐intelligence.

Research limitations/implications

This is a conceptual paper that has implications for internal auditing practice. Academic researchers will find this framework to be useful for testing it in the field. Practitioners will also benefit from this model when assessing the role of IAs in an ERP environment.

Originality/value

Prior research in the auditing field has overlooked this issue. This paper will attempt to fill such an apparent gap in prior research and will help motivate further research in this field.

Keywords

Citation

Madani, H.H. (2009), "The role of internal auditors in ERP‐based organizations", Journal of Accounting & Organizational Change, Vol. 5 No. 4, pp. 514-526. https://doi.org/10.1108/18325910910994702

Publisher

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Emerald Group Publishing Limited

Copyright © 2009, Emerald Group Publishing Limited

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