The Impact of Enterprise Systems on Audits of Small Entities

,

18 Pages Posted: 24 Jan 2005

See all articles by Kitty Pumphrey

Kitty Pumphrey

Idaho State University

Ken Trimmer

Idaho State University

Date Written: 1/17/2005

Abstract

Small business integration of enterprise systems affects risks and internal control. Ideally, the use of enterprise systems should enhance internal control. However, enterprise systems can introduce new risks that may go undetected if the auditor does not adequately test system processes. Small audit firms appear more likely than large to place too much reliance on the untested accuracy of computer generated data. To identify trends we have interviewed three independent auditors of small audit firms that audit small businesses that use enterprise systems. We found that none of the firms have formal policies for auditing such company environments.

Keywords: Auditing, Enterprise Resource Planning, Small Firms

JEL Classification: M49

Suggested Citation

Pumphrey, Lela and Trimmer, Ken, The Impact of Enterprise Systems on Audits of Small Entities (1/17/2005). Available at SSRN: https://ssrn.com/abstract=649843 or http://dx.doi.org/10.2139/ssrn.649843

Lela Pumphrey (Contact Author)

Idaho State University ( email )

921 South 8th Avenue
Pocatello, ID 83209
United States

Ken Trimmer

Idaho State University ( email )

Pocatello, ID 83209
United States