Embedded Audit Modules in Enterprise Resource Planning Systems: Implementation and Functionality

Roger S. Debreceny · Glen L. Gray · Joeson Jun-Jin Ng · Kevin Siow-Ping Lee · Woon-Foong Yau

114 citations0/0 files storedJournal of Information Systems

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

ERP Systems Implementation and Impact Auditing, Earnings Management, Governance Decision Support System Applications

Abstract

Embedded Audit Modules (EAMs) are a potentially efficient and effective compliance and substantive audit-testing tool. Early examples of EAMs were implemented in proprietary accounting information systems and production systems. Over the last decade, there has been widespread deployment of Enterprise Resource Planning (ERP) systems that provide common business process functionality across the enterprise. These application systems are based upon a common foundation provided by large-scale relational database-management systems. No published research addresses the potential for exploiting the perceived benefits of EAMs in an ERP environment. This exploratory paper seeks to partially close this gap in the research literature by assessing the level and nature of support for EAMs by ERP providers. We present five model EAM-use scenarios within a fraud-prevention and detection environment. We provided the scenarios to six representative ERP solution providers, whose products support “small,” “medium,” and “large” scale clients. The providers then assessed how they would implement the scenarios in their ERP solution. Concurrent in-depth interviews with representatives of the ERP providers address the issue of implementing EAMs in ERP solutions. The research revealed limited support for EAMs within the selected ERP systems. Interviews revealed that the limited support for EAMs was primarily a function of lack of demand from the user community. Vendors were consistent in their view that EAMs were technically feasible. These results have a number of implications for both practice and future research. These include a need to understand the barriers to client adoption of EAMs and to build a framework for integrating EAMs into firm risk-management environment.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 114 citations exist upstream.

References

2002Managing risks in enterprise systems implementations 2002Continuous Auditing: Building Automated Auditing Capability 1999ERP: Tools, Techniques, and Applications for Integrating the Supply Chain 2002Feasibility and Economics of Continuous Assurance 1999Continuous Online Auditing: A Program of Research 2000The Future of Enterprise System-Enabled Organizations 1998Information Systems Control and Audit

Cited by

2007Active ERP implementation management: A Real Options perspective 2012Cloud Computing: Overview and Risk Analysis 2019Determinants adoption of computer-assisted auditing tools (CAATs)2011Information Technology Outsourcing: A Taxonomy of Prior Studies and Directions for Future Research 2011Fifteen Years of Data and Information Quality Literature: Developing a Research Agenda for Accounting 2010Continuous Assurance for the Now Economy 2013The Effect of Continuous Auditing on the Relationship between Internal Audit Sourcing and the External Auditor's Reliance on the Internal Audit Function

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.