Enron Story and ERP

implications

Presented By
Shubham Bodke (M-18-10)
Paras Gharat (M-18-20)
Nikita Mahadik (M-18-30)
Aditi Parab (M-18-40)
Gauri Sawant (M-18-50)
 Flow of the presentation
Introduction

Enron Collapse

Sarbanes-Oxley Act

ERP Implications

Conclusion
Enron Collapse
 Sarbanes-Oxley Act
 Established in the year 2002

 To encourage top management accountability

 Title IX – Financial statements with SEC

 Title II – Auditor’s independence

 Title IV – Financial Disclosures

 Implications of the ERP
 Archiving
Archiving is removing od the data from the SAP R/3
system only after they have been recorded to media
(tape backup, DVD-R) for permanent storage.

 User authorization
• User authorizations through Profile generator
• It provides a simple method for selecting the
functions that a user should be allowed to perform.
 Implications of the ERP
 Tolerance Group
ERP makes sure employees don’t exceed their authority
in financial transactions is by setting limits on the SIZE
of transactions that an employee can process

 Financial Literacy
Key feature of any ERP system is the ability to drill
down from a report to the source documents that created
it.
 Conclusion
• Compliance measures
FASB
SOX
SEC
changed corporate behaviour
Investor confidence