Tax season is behind us, but the fact is, your ERP system could face audits one day and it’s best to be prepared.
There’s no need to fear a possible ERP audit, especially when you are prepared and have planned for the eventuality. Understanding why audits are taking place can help you prep for it too. Most audits are performed by independent auditors to ensure that a company’s financial records are presenting an accurate portrait.
This is done by testing and reviewing financial statements to make sure they don’t have mistakes or fraud.
A company’s ERP system obviously plays a vital role in this audit process.
Here’s what you need to know about preparing your ERP for audits.
Check for changes
Knowing who does what – and who has access and permissions to things – is something that should be nailed down today. It’s not always clear what users have what permissions, and this can lead to employees being able to set up false accounts and possibly post payments or receivables for themselves – never a good thing.
Also, do you know how to check for changes to security settings? Knowing who has control of these things – and having security measures in place – can save you a lot of headaches.
This can be a real pain, especially if you don’t have enough licenses to use the software you’ve purchased. Knowing whether you are in compliance with the software licenses is critical – and it can also eliminate redundancies.
We touched on this above but it bears repeating: Inappropriate access puts your business at risk. Your company should be reviewing user access periodically (at least 3-4 times a year) to make sure everything is on the up and up.
If you have questions about preparing for an upcoming audit or reviewing your ERP system, we can help. Contact us today!