Case Study On Improving Internal Control Of Company A Under ERP Environment

People take more attention onto internal control of enterprises and highly concerned about the internal control system of enterprise. At the same time, information technology is developing rapidly, enterprises can take advantage of advanced information technology to optimize business process, enhance the accuracy and effectiveness of business data and improve operational efficiency.The core idea of ERP is through planning and controlling daily operations to help companies achieve standardized and effective management. ERP is involving business aspects of production, sales and procurement which could support enterprises to achieve full controlling on business activities and integrate financial and business processes. ERP and internal control system have the common goal which is to improve the efficiency and effectiveness of operation, and to implement the enterprise development strategy. Although ERP can improve the means of internal control and the efficiency and effectiveness of internal controls, ERP also brings new risks and challenges to internal control system. How to improve internal control to promote enterprises achieving strategic after implementing ERP becomes the focus of theory and practice research. ERP brings great impact on enterprise's internal control. If enterprises do not adjust and optimize control system after implementing ERP, it would be difficult to achieve the desired objectives of ERP. Therefore, it is necessary to analyze the running of internal control systems after ERP implementation, to help companies improve and optimize internal control. Merging ERP and internal control together would help enterprises efficiently achieve internal control objectives.Firstly, according to ERP characteristics and elements of internal control, the paper analyzes the features of internal control system under the ERP environment. Secondly, the paper puts forward strategies of optimizing internal control under ERP environment, which is that enterprises should make full use of ERP system functionality to optimize internal controls, and evaluate business processes to find out the potential risks in all aspects of business processes, then design the appropriate manual or automatic control measures to implement the critical control points, in order to achieve internal control objectives. Finally, with a case study of company A, this paper finds out company A's internal control problems and then puts forward the corresponding measures of improving internal control. However, different enterprises would have different problems of internal controls under ERP environment, the result of this paper has some limitations. Other companies should choose the appropriate internal control optimization strategies according to their own characteristics.