SOX And ERP Adoption

Abstract

The objective of this paper is to examine the relationship between the implementation of the Sarbanes-Oxley (SOX) legislation and Enterprise Resource Planning (ERP) systems, and to investigate the impact that the passage of this legislation has had on the decision for companies to adopt ERP technology. The legislation itself is discussed, along with an analysis of ERP systems, including their components, their advantages and disadvantages, and the critical factors and crucial components which must be present for the successful deployment of such systems. This paper explores the contributory effect of SOX on ERP adoption. The authors concluded that SOX merely accelerated an inevitable process. The best managers will always find and use the best tools to maximize benefits to their organizations. The requirements of Sarbanes-Oxley forced companies to rethink their processes and technology, and therefore may have provided the final incentive for companies to commit to ERP.