Research On The Issue Of Enterprises Internal Control Design In The ERP Circumstance

Internal control is a significant part of the business management. The enterprise highly depends on a strong and effective internal control. With the development of the ERP information technology, traditional control system has not been enough in respect that structure and operation flow of organizations have changed a lot. So it is necessary to design a new control system in the ERP circumstance. This article combines ERP and internal controls. On the base of elaborating main functional modules of the ERP system, selects general ledger module, procurement and payment cycle module, inventory management module, sales and receivables cycle module, and respectively analyzed from business processes, potential risks and internal control system design three aspects. Attempts to design a general theoretical model for the enterprise internal control in the ERP circumstance, promote the ERP continue to learn the internal control thinking, and internal controls continue to use the precise control means of ERP. Give valuable comments for further study in how to integrate the two aspects.Research ideas in this paper is that, on the base of analyzing the theories for objectives, steps of internal control design, use the research results of the traditional environment,design the general pattern of internal controls for general ledger management systems, procurement and payment cycle management system, inventory management system , sales and receivables cycle management system in the ERP circumstance.This paper is divided into five chapters. The first chapter describes the background and the significance of this article's topics, propose the study contents and research methodologies of the paper. The second chapter analyzes the definition and elements of internal control, information and related technology control objectives. Chapter III analyzes application characteristics of the ERP system, the impact for the enterprise and the new features of internal control in the ERP circumstance on the base of analysis of the definition and elements for internal control. At the same times, the article does a preliminary theoretical analysis from the internal control objectives, methods, principles, steps four aspects on the base of new features of ERP application. Chapter IV designs the enterprise internal control in the ERP circumstance from a business process analysis, risk analysis , internal control design three aspects, on the base of the control objectives and the control steps. Chapter V case studies, internal control design theory is applied into a specific enterprise. Finally, the paper pointed out that this control model for enterprise is a general theoretical model under the conditions of perfect information. Enterprises need to modify and improve the control mode according to the actual situation, in order to build the optimal control system.