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  • Structure
  • Schedule
    • First Half of the Semester
      • Week 1: Introduction
      • Week 2: Business Process; Assertions
      • Week 3: Fraud, P2P Controls
      • Week 4: OTC Process, Types of Controls
      • Week 5: Inventory & Shipping Controls
      • Week 6: Invoicing & Collection Controls
      • Week 7: IT vs. SAP Controls, Security 1
    • Second Half of the Semester
      • Week 8: Security: Roles, Finance Process & Controls
      • Week 9: Security: User Management, Segregation of Duties
      • Week 10: Data, SOD/SAT Review
      • Week 11: Change Management, Development
      • Week 12: Auditing, Table Security, Risk / Control Framework
      • Week 13: SAP Futures, Special System Access (updated Nov 30)
      • Week 14: Character vs. Controls
  • Assignments
    • Exercise 1: Procure to Pay
    • Exercise 2: Order to Cash
    • Exercise 3: Journal Entries
    • Exercise 4: Segregation of Duties (SOD)
    • Final Exercise: Risk-Controls Framework
    • Extra Credit Assignment
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Auditing Controls in ERP Systems

ERP Systems

Week 14: Character vs. Controls Wrap-up

December 13, 2016 By Edward N Beaver

Continuing great job on the discussions.  I appreciate your responses and I learn from you.  You raised most of the important points but let me summarize my view.

Q1: How much automation of controls is best?  When should they be introduced?  Automated controls are ideal but not always possible or cost effective (e.g. complex scenarios or decision making).  My experience is leverage automation where possible and easily implemented.

As many of you pointed out ‘baking in’ the controls from the start is the easiest and most cost effective.  However they will added to as an organization grows, changes, etc.  Also, as the process matures and the external world changes you need to respond.

Q2: Describe the character of the leaders involved in the Real World control failures we reviewed.   The words you used I agree with: Arrogant, greedy, above control (‘absolute power corrupts absolutely’), self-interested, self-preservation response to pressures, etc.

These leaders were not necessary ‘bad’ leaders – many were very effective in accomplishing the goals of their organization.  However,  good leaders can have ‘bad’ character.  Creating a climate of controls need to balance (e.g. Sox type regulations) when this character drives illegal, immoral, or unethical behaviors.

Q3: A person’s character is very crucial in the audit industry.  How would you build your reputation and maintain a good ethical character in this industry?  This is something you have to do yourself.

I appreciate how Paul phrased it: Paul: ‘IT Governance: which is to “do the right thing, the right way”. Character is doing the right thing because it is the right thing to do.’  Integrity goes beyond the skills you have or knowledge of right things, but always doing the right things.

This integrity requires personal courage to stand up and be independent in our ‘end justifies the means’ world.

Q4: SAP’s GRC module may be important and effective, but can the cost of GRC be justified?

You all outlined in some detail what’s in this functional tool.  However in making the decision where to use you must weigh GRC’s costs vs. the cost of implementing controls other ways (often higher) plus the cost of not having needed controls or strength of controls in place.

 

Thanks for all your work in the participation blog this semester.   I trust it helped your learning.  Also remember to: do the right thing because it is the right thing to do.

Team Member Evaluation (Optional)

December 12, 2016 By Edward N Beaver Leave a Comment

All members of a team receive the same points for the exercise submissions. If you feel that one or more members are not doing their fair share, please do the following 2 things:

  1. Send email to all members of your team (.cc me) indicating that you will be submitting a team member evaluation form.  This step gives all members of the team the option of completing a form.
  2. Complete and submit the following form to me by email.

All responses will be kept confidential. 

 

Click Here for the Team Member Evaluation Form

Real World Control Failure – TJX

December 12, 2016 By Victoria A. Johnson Leave a Comment

Real World Control Failure – TJX by Victoria A. Johnson

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Weekly Discussions

  • Assignments (11)
  • Exams (5)
  • General (6)
  • Real World Control Failure Presentations (27)
  • Week 01: Introduction (4)
  • Week 02: Business Process; Assertions (4)
  • Week 03: Fraud, P2P Controls (2)
  • Week 04: OTC Process, Types of Controls (3)
  • Week 05: Inventory & Shipping Controls (3)
  • Week 06: Invoicing & Collection Controls (1)
  • Week 07: General IT vs. SAP Controls, Security 1 (3)
  • Week 08: Security 2, Finance 2 (2)
  • Week 09: Security: User Mgmt, Segregation of Duties (2)
  • Week 10: Data; SOD/SAT Review (2)
  • Week 11: Change Management, Development (3)
  • Week 12: Table Security, Control Framework (2)
  • Week 13: SAP Futures, Special System Access (2)
  • Week 14: Character vs. Controls (4)

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