Phases of Implementation

Business process controls need to be considered throughout each phase of the implementation, from inception to post go-live support. Efficient use of PERT and CPM techniques helps in successfull development and integration of the processess.

The Axpert engine is designed in such a way to give one stop solution by simplified world class technology through agile methodology in a smart way to overcome the complexities in the ERP implementation process.

IAS ERP Implementation Life Cycle model

1.ERP Product Definition, Documentation and Sign-Off

In this phase, the project team, with input from the company’s management and IT management, creates a detailed project document, including budgets and timelines and ensuring minimum standards for project deliverables are defined.  The internal audit function also assist in the decision-making process by assessing whether the selected software is capable of enforcing controls, and if the group performing the implementation has a sound methodology that incorporates a control orientation with an emphasis on meeting business requirements. ERP product is then defined on the documented BPM and signed off by the Management.

2. Installation, Training and Implementation of ERP product

The Axpert Engine will be installed with ERP product on the desktop/web server and the number of users will be defined as per the commercial terms.

The organisation should provide one single point communication or project lead(SPC) providing an integrated approach across the implementation project for resource planning, issue resolution, status reporting and cost management. All departments will be provided Standard Operation Procedure (SOP) and Operation Manual (OM) through SPC. The SPC plays a important role in mentoring and supporting the internal audit team with the day-to-day activities of the implementation. During this phase, the implementation team configures the application and performs detailed tests to determine if the ERP system has captured the documented BPMs, control requirements and  is functioning as designed.

Testing of the application will occur with the access enforcement security model that will be used in production.

3. ERP Audit and Due Diligence

Internal auditors assist by verifying that a reasonable minimum standard is defined for each major deliverable and that the review and approval process is robust enough to provide quality deliverables.

Planning should include internal audit’s evaluation of the intended deliverables and  a review to confirm that the appropriate approvals have been obtained. It is strongly recommended to conduct a physical inventory audit and fixed asset audit in order to get a intact position of the current and fixed asset which are very useful to analyse utilisation benefits in the future.

Internal audit can verify that:

  • All key controls are implemented and ERP system is enforcing controls effectively
  • Assist with the testing to confirm that necessary evidence is being captured for audits or compliance requirements
  • -Controls that cannot be enforced by the ERP system are identified, and appropriate manual compensating controls are designed;
  • Application access processes and controls, segregation of duties, are developed and documented.
  • Verify what training was conducted as well as evaluate the quality of the training.
  • Verify that all outstanding project issues are adequately addressed;
  • Involving internal audit in every phase throughout the project will save significant time and money as well as reduce the risks inherent in any such project, thus increasing the implementation’s chance for success

4.Deployment and Support

During the deployment phase, the implementation team performs the cutover from the old application to the newly implemented solution. To determine that the decision to go live with the new ERP system  is appropriate

  • Verify that all outstanding project issues are adequately addressed;
  • Confirm that a detailed go-live checklist has been created and approved by project management and stakeholders;
  • No “show-stopper” issues have been encountered prior to implementation;
  • Verify that a detailed contingency plan exists.

After the new ERP system goes live,  the implementation team provides support for any issues encountered  and addresses any noncritical issues that were identified before deployment.

Internal audit should perform a post implementation review to verify that the controls are operating effectively. Organisations should ensure increased levels of end user support will be available. This may include retention of some internal team members specific for each business process.