Authors: Marilena Athanasaki, Augustinos Dimitras

Title: Do ERP implementations enhance audit quality?

Abstract

Information technology is changing almost every phase of global business environment. In order to ensure both their position in the market and a competitive advantage, a large number of companies, perhaps the majority, all around the world, has adopted or are in the process of implementing modern Accounting Information systems, such as ERP. The core concept of an EPR is to automate business processes and to share common data across the enterprise. ERPs have fundamentally re-shaped the operating practices of companies, requiring auditors to keep up to date with both accounting and such sophisticated technologies. At the same time, auditors should adjust audit procedures, tests and controls, in order to ensure that the system is automating every business process correctly. This paper examines the extent to which ERP implementations have affected audit procedures, substantive tests and control risks. These elements are examined as determinants for audit quality. The study is based on an on-line survey questionnaire in order empirical evidence to be gathered from auditors auditing clients that have implemented ERPs. The evidence gathered are analyzed and the main results are discussed.

JEL Classification codes: M40-Accounting and Auditing: General, M42-Auditing