Technology has certainly transformed the audit and
given rise to a host of new issues, opportunities and
concerns. With the advent of technology such as EDI,
auditors must expand their knowledge of how they audit
and obtain evidence in an enterprise resource planning
(ERP) environment. As an auditor many years ago, I had
the task of auditing the purchasing and accounts payable
cycle. Many large organizations have ERP systems like
Oracle, SAP and PeopleSoft. The processing of accounts
payable is housed in all of these ERP systems. a Vendors
are often paid through EDI transactions using a three-
way match. Specifically, a vendor is set up in the system
with a specific ID. a A purchase order/requisition,
approval and receiving report along with the invoice are
matched. a If it is within the dollar tolerance, the ERP
system will generate payment to the vendor
electronically. As an auditor, I would test a number of
transactions for completeness, approval with
appropriate signature (electronically) and approval
amounts. a I would check to see if there were
management overrides or exceptions. I would work with
organizational personnel to run queries and exception
reports. a Not to mention, I would check application
controls and determine if tables within the ERP systems
were updated according to policy guidelines. a In today's
marketplace, most people purchase goods and services
online (e.g., Amazon, Walmart, etc.). a Therefore, EDI
transactions provide convenience and some new risks
regarding security.
