When it comes to authorizations in your Dynamics environment, do you find that accountants often have different opinions? Achieving an "accountant proof" setup within Microsoft Dynamics, where accountants approve the authorization structure, is easier said than done. In this blog, we'll explore the impact of automation, the importance of system monitoring, and provide tips on managing authorizations to facilitate a smooth audit in your Dynamics environment.
Impact of Automation
Organizations embrace automation for its efficiency in streamlining business processes. ERP systems like Microsoft Dynamics 365 are implemented to simplify and expedite financial, production, and logistical processes. As businesses become increasingly reliant on IT systems, the question arises: Are these systems truly reliable?
The setup of your Dynamics environment has a direct impact on the audit's scope and volume. An essential aspect of auditing involves checking authorizations—who has access to which systems or can process specific data. However, the reliability of ERP systems often goes overlooked. Many organizations neglect to establish or properly manage authorization setups, resulting in increased complexity, time, and costs during audits
Achieving an Accountant-Proof Environment:
Now, how can you effectively manage authorizations and ensure a smooth audit in your Dynamics environment? Here are some tips based on our experience:
- Invest in a robust authorization structure with top management commitment
- Assign authorizations based on clear organizational structure, tasks, and responsibilities.
- Implement appropriate segregation of duties within the defined functions.
- Document the authorization structure and maintain this to accommodate organizational and personnel changes.
- Integrate authorization management with your change management and check-in/check-out processes.
- Conduct regular internal monitoring of the authorization setup.
- Achieve professional authorization structure for reliable internal controls.
Managing authorizations and creating an "accountant proof" Dynamics environment requires careful attention and effort. By following the tips mentioned, organizations can establish robust authorization structures, streamline audits, and instill confidence in the reliability of their automated information systems. Should you have any questions about IT-auditing of ERP systems or auditing in general, feel free to contact us.