Explain the nature of the database component of an Enterprise Resource Planning (ERP) solution
What will be an ideal response?
An ERP solution includes a database design as well as initial configuration data. It does not, of course, contain the company's operational data. During development, the team must enter the initial values for that data as part of the development effort. SAP, the leading vendor of ERP solutions, provides ERP databases that contain over 15,000 tables. The design includes the metadata for those tables, as well as their relationships to each other, and rules and constraints about how the data in some tables must relate to data in other tables. The ERP solution also contains tables filled with initial configuration data.
Large organizational databases contain two types of program code. The first, called a trigger, is a computer program stored within the database that runs to keep the database consistent when certain conditions arise. The second, called a stored procedure, is a computer program stored in the database that is used to enforce business rules. An example of such a rule would be never to sell certain items at a discount. Triggers and stored procedures are also part of the ERP solution. Developers and business users need to configure the operation of such code during the ERP implementation as well.
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The responsibility for implementing sound accounting practices and principles, maintaining an adequate internal control structure, and making fair representations in the financial statements rests primarily with the
A) Senior management. B) External auditors. C) Internal audit department. D) Shareholders.