Information technology is changing almost every phase of global business environment. Auditors are facing the vast challenge of working and keeping up-to-date with such sophisticated technologies. In ERP systems, operational and financial data are tied together through a complex information flow. Transactions can be automatically entered without review or pre-checking with the ERP system. Therefore with the implementation of integrated ERP systems, internal controls are developing itself to support automated operational management.

The ERP systems are one of such technologies used by various organizations to achieve a strategic advantage in the competitive market. The ERP systems are computer-based systems designed to process an organization’s transactions. It facilitates integrated and real-time planning, production, and customer response. From an auditing perspective, ERP systems created new opportunities as well as new challenges.

Based on a questionnaire survey, the paper attempts to examine the extent of impact of this modern computerised ERP system on Auditing in an organization. It also tries to understand how ERP system affects the internal control system of the organization. This paper also suggests that Auditors must also understand the ERP system extremely well to perform a proper audit of a client that uses this system.

Overall result has revealed that auditors can do effective, efficient & fast auditing by using new auditing tools & procedures instead of the traditional procedures. The overall objective and scope of an audit doesn’t change in ERP environment. Overall findings of the research have suggested that the nature and the complexity of the ERP system increase the system risks. Auditors should give more attention to the risks involved with an ERP system.

Thus, result of the research suggests that the use of the new technologies will raise the quality of auditing and internal control system in the organizations. There is vast scope in research conducted about the ERP impact in auditing process and internal control in future.