October 6, 2000

Joe Doe
Melody Doe
RE: ERP HRMS and Financials Process Integrity Review
Dear Joe and Melody:
As part of the IT Internal Audit teaming arrangement with the ABC Vice President of
Internal Audit, Ernst & Young is currently conducting a review of ABCs ERP
implementation. The entire IT Internal Audit of ERP at ABC is composed of two phases:
Phase I is the general controls review of the Atlanta Operations Center; and Phase II is the
process integrity review of the ERP Human Resources (HR) and Financial
Accounting/General Ledger (GL) modules.
We have worked with Shelia Doe in planning for this review, and have completed the
fieldwork for Phase I. As we move on to Phase II, we would like to communicate our
objective, scope and approach for this phase.
The objective of Phase II is to assist ABC in the identification and assessment of key
business process risks, and to assist with the design of leading practice control solutions.
Review Scope and Approach
Our review scope will focus on the controls for critical business processes surrounding the
ERP HR and GL operations. Our approach utilizes Ernst & Youngs proven application
controls methodology, and will be tailored to ABCs environment. We will complete
procedures designed to provide information about the effectiveness of the internal controls
over the ERP-enabled business processes. Our review will cover both the manual controls
that are in place to prepare, process and utilize information from ERP and the application
controls that reside within the ERP software programs.
We will update our understanding of the current state of the HR and GL module
implementations, including the status of system integration with ERP, as well as manual
processes supporting ERP through reviews of documentation, interviews, and process
walkthroughs. We will also obtain, through additional interviews, ABC Managements
vision and strategy. In connection with this, we will evaluate plans for future
enhancements, implementations, and process changes for their alignment with the features
and strengths of the ERP modules installed, planned, and available.
As an initial step in understanding your HR and GL processes, we would like to request
you to provide us any available documentation of your business processes and procedures.
We anticipate conducting our interviews and process walkthroughs with key business
users starting Monday, October 16, 2000 and completing our fieldwork on or before
Friday, October 20, 2000. We will issue a draft report to you approximately two to three

weeks subsequent to the completion of our fieldwork. The final report will be issued shortly
thereafter.
John Doe, Arlene Doe, and Jeanette Doe of Ernst & Young will be responsible for
conducting the review. Please feel free to contact John at 999-999-9999 should you have
questions, or any additional areas or issues you would like us to review.
Sincerely,

John Doe
Manager, Ernst & Young
cc:
J.

Doe

S. Doe
E&Y LLP