Read the Nolan and McFarlan article, Information Technology and the Board of Dir

Question

Read the Nolan and McFarlan article, Information Technology and the Board of Directors (Links to an external site.)Links to an external site., as well as this week’s lecture. In an eight- to ten-page paper (not including the title and reference pages): Provide a summarization of the role accounting information systems plays in providing accurate and effective accounting information to internal and external stakeholders in context to the selected IT mode; Select one of the four modes of information technology and analyze the mode focusing on three of the following concepts; Discuss the concept and be supported with scholarly research. Provide a practical example for each of the following concepts: Systems approach to quality accounting information systems. Internal controls focusing on preventive, detective and corrective approaches to accounting information and accounting information systems. Risk management- contingency plans for disaster recovery and security of information and information systems. Compliance with the Sarbanes-Oxley Act of 2002.

Explanation / Answer

Sarbanes-Oxley Act (SOX) is an act that came in to force in 2002. It is an Amercian Federal Law. It plays an important role in Comapny's security system. This law comprises of all the punishable acts that a company facesin finance perspective. Based on these conditions any coroporation that implements ERP in such a way that it is free from financial frauds.

ERP is a coustomized software that is now implemented in many big companies. It comprises of many moddules such as fico,sd,mm,pp. All these modules are interlinked to one another. All these modules deals with client's data which is very confidential. All the employees who are working in thes modules should have access to their respective modules so that data can be in consistent manner.
  
FICO is the major module in ERP landscape which deals with the money flow in the company. To secure all this based on the SOX rules SAP GRC has been implementing in ERP landscape so that a particular user can get access to the required functionalities.
  
SAP GRC is the risk mitigation module which assigns the users with roles and access and If any user do crime in financial aspect could easily be caught. Internal and external auditors could easily monitor the money flow in ERP system with effective implementaion of SOX. Security level got increased in business process with the help of SOX implementation in ERP.

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