Analysis Of Internal Control System Under EDP And ERP Environment

The principal task of corporation governance system is to build up a comprehensive internal control system. Meanwhile, the wide application of Enterprise Resource Planning System (ERP) in all kinds of companies brings new impacts and improvements to the internal control. This paper attempts to make a contrast of the internal control functions under Electronic Data Processing System (EDP) environment and ERP environment. Then, some control models and control advices are proposed to improve the internal control system in enterprise with wide application of information technology. The contrasts are made in terms of the main factors, the control models, the work flows, the control methods and characteristics of enterprise internal control system. In order to illustrate the problem clear, a certain business process, procurement and payment flow, is discussed and analyzed in details.