ERPs are useful to auditors for which of the following reasons?
A)ERPs use cloud computing technology,which allows auditors to review transactions from anywhere.
B)ERPs track details regarding creation,modification,and use of transactions throughout the organization in a single system.
C)ERPs are required by the Sarbanes-Oxley Act of 2002.
D)ERPs are spread across multiple logical databases,allowing auditors to minimize disruption to processing when reviewing ERP activity.

Question

Quizplus · Accepted Answer

ERPs are useful to auditors because they track details regarding creation, modification, and use of transactions throughout the organization in a single system, which enables auditors to gain visibility into transactional activity across the organization. This can help auditors detect fraud, errors, and other irregularities, and ensure compliance with relevant laws and regulations. Cloud computing technology (A) may make it easier for auditors to access data from ERPs, but it is not the primary reason why ERPs are useful to auditors. While the Sarbanes-Oxley Act of 2002 (C) requires companies to maintain effective internal controls over financial reporting, it does not specifically require the use of ERPs. Finally, while some ERPs may be spread across multiple logical databases (D), this is not a primary reason why ERPs are useful to auditors.

ERPs Are Useful to Auditors for Which of the Following