（2006）Sarbanes-Oxley compliance, internal control and ERP Systems：Automation and the case of mySAP ERP.pdfVIP

WORKING PAPER A-2006-02 Pall Rikhardsson, Peter Best Claus Juhl-Christensen Sarbanes-Oxley compliance, internal control and ERP systems: Automation and the case of mySAP ERP Accounting Research Group Sarbanes-Oxley compliance, internal control and ERP systems: Automation and the case of mySAP ERP Pall Rikhardsson, PhD Department of Business Studies, Aarhus School of Business, Denmark par@asb.dk Peter Best, PhD School of Accountancy, Queensland University of Technology, Australia p.best@.au Claus Juhl-Christensen, MSc Financial Accounting and Cost Management Managing SAP Consultant, EDB Gruppen, Denmark csj@edbgruppen.dk Abstract The effort to comply with the Sarbanes-Oxley Act (SOX) has focused management attention on the im- portance of assessing, developing and maintaining an effective and efficient internal control system. ERP systems are a crucial factor in developing such a system. Despite the attention this has attracted in prac- tice, little academic research has focused on this area. This chapter addresses the question: How are ERP systems implicated in Sarbanes-Oxley compliance? It aims to show how SOX requirements regard- ing assessment and improvement of internal controls are related to the functionalities of an ERP system both in local and global implementations. It examines a solution (mySAP ERP) offered by one specific vendor (SAP) and what functionalities are relevant to global SOX compliance. Based on this, the chapter discusses likely developments regarding compliance functionalities in future releases of ERP systems. Keywords Internal control, compliance, Sarbanes-Oxley, ERP systems, SAP, mySAP ERP -1- Sarbanes-Oxley compliance, internal control and ERP systems: Automation and the case of my- SAP ERP Abstract The effort to comply with the Sarbanes-Oxley Act (SOX) has focused management attention on the im- portance of assessing, developing and maintaining a