Enterprise Internal Controlling Risks and Prevention within ERP System

Abstract

Nowadays, while the government has launched the policy of industrialization to be stimulated by informatization, the application of ERP system is undoubtedly a powerful engine to promote the development of enterprise informatization. It has boosted tremendous changes of management process in enterprises, meanwhile, it has also brought risks with IT features to the enterprise's internal control. Therefore, it is imperative and important to explore and do researches on the risks of internal control and take preventive measures within the ERP context in the future. Starting from the concepts of ERP system and internal control, this article elaborates the implications of EPR system on various factors of internal control after enterprises put it into practice. Basing on the study of survey data of enterprises, a further analysis is carried on about the risks that internal control of enterprises is tackling within the ERP system. Thus, some corresponding measures to guard against these risks are put forward thereof.