Erp System

 Erp System Essay

With the advancement and innovation of enterprise information process, IT governance becomes a lot more important in company. So that as the largest expense project with the enterprise THAT governance, ERP (Enterprise Reference Planning) system has been received wide reputation and promotion in the shown companies of your country. We have discussed the correlation among ERP program implementation and audit service fees based on organization costs of company from this paper, to supply valuable advantages to the advancement theoretical study on taxation fees in this area. This newspaper is based on the principal-agent theory, after the review of some comparative literatures in China and abroad, we all analyzed the theories with the relationship between ERP system implementation and audit costs, which support that the implementation of ENTERPRISE RESOURCE PLANNING system affects audit fees of company by the two ways. One way is direct effect, and this effect has two mutually stability of electric power: a decreased representation of taxation fees by simply reducing the auditors' workload, with an elevated reflection of audit service fees by bettering the risk of review. The other way is usually indirect influence, which causes the reducing of internal company costs through the implementation of ERP program, and then decreasing the taxation fees. In the following, we select the shown companies which implemented ERP system on the Shenzhen Stock market and Shanghai Stock Exchange while research trials, using the Wilcoxon rank test and multivariate thready regression version to investigate the partnership between ERP system implementationпјЊagency costs and the audit service fees. And the results of this article are mostly influential in the following: Firstly, we located that the businesses with ERP system don't have any significant difference of audit costs between the previous year execution and the initially year. Nevertheless we widened the sample period, the firms implementing ENTERPRISE RESOURCE PLANNING system possess a significant correlation with the audit fees, and this result...